Australia: Business confidence moderates in February
March 14, 2017
The business confidence index produced by the National Australia Bank (NAB) fell to 7 points in February, below the 10 points registered in January. The indicator remains above its long-term average of 6 points and above the 0-point threshold, which means that Australian businesses are optimistic regarding economic conditions in the coming months.
According to the NAB, the fall was due to some temporary factors that had boosted confidence in January fading away in February. Business conditions fell sharply but remained above their long run average. The fall in business conditions was due to deteriorating trading, employment and profitability. On the broader implications for the economy, the NAB commented that the survey was “consistent with our expectation for the economy to enjoy solid rates of growth in the near-term.”
Author: Christopher Mc Innes, Economist