Australia: Business confidence moderates in April
May 2, 2016
The business confidence index published by the National Australia Bank (NAB) fell from six points in March to five points in April. The indicator is still above the 0-point threshold, which means that Australian businesses are relatively more optimistic regarding economic conditions in the coming months. Nevertheless, the fall puts the figure slightly below the long-term average of six points.
According to the NAB, mining and wholesale industries continued to show diminished confidence; however, other industries showed more positive readings. The Bank also noted that uncertainty pertaining to the upcoming budget, potential elections, and global economic uncertainty likely weighed on conditions, which translated into weaker confidence in April. Despite the decrease, the NAB noted that confidence decreased only modestly considering the stark deterioration in business conditions. The NAB elaborated by saying that, “confidence remains crucial to the outlook, but this was still a reasonable outcome given the added uncertainties around the global economy and the upcoming Federal Budget and election.”
Author: Robert Hill, Economist