Australia: Business confidence moderates in August
September 10, 2014
The business sentiment index published by the National Australian Bank (NAB) fell in August from the 10 points tallied in the previous month to 8 points, unravelling July’s gain. However, the indicator still rests above the 0-point threshold, which indicates that Australian businesses are optimistic regarding economic conditions in the coming months.
According to the NAB, the easing in business confidence was driven by a decrease in business conditions, with the largest falls recorded in manufacturing, construction and retail. In addition, a sharp decrease in profits and sales contributed to August’s moderation. The employment index was relatively unchanged from July’s low level. The NAB added that, “solid economic upturns in the US, UK and Canada limiting the slowing in advanced economy growth while the anticipated softening in the emerging market economies is under way, pointing to another year of below-trend 3% growth.”