Australia: Business confidence increases again in June
July 14, 2015
The business sentiment index published by the National Australia Bank (NAB) jumped from May’s eight points to 10 points in June, marking the third consecutive increase and the highest level since September 2013. The jump has brought the indicator further above the 0-point threshold, meaning that Australian businesses are optimistic regarding economic conditions in the coming months.
According to the NAB, Australian firms are optimistic despite external risks. The weaker AUD, lower interest rates and a business friendly budget released in May are all working to provide a lasting boost to business confidence. The bank also noted that, “positive confidence was relatively broad based across industries, which could suggest greater sustainability, although growing jitters on global matters (especially in regards to China) suggests that current levels may be hard to sustain.”
Author: Robert Hill, Economist