Australia: Business confidence moderates in March
April 11, 2017
The business confidence index produced by the National Australia Bank (NAB) fell to 6 points in March, below the 7 points registered in February. The indicator is now in line with 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 likely due to global and domestic political uncertainties. Business conditions improved markedly, thanks to stronger trading conditions and profitability. On the broader implications for the economy, the NAB commented that the survey was “consistent with NAB’s outlook for economic growth to accelerate in H2 2017, following some likely disruption in Q2 from Cyclone Debbie. However, recent volatility and ongoing weakness in the retail sector suggests there is still cause to be cautious about the longer-term outlook.”
Author: Christopher Mc Innes, Economist