Australia Business Confidence


Australia: Business confidence moderates in September

October 14, 2014

The business sentiment index published by the National Australian Bank (NAB) fell from the 7 points tallied in August to 5 points in September, the lowest level in over one year. 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 most industries recording a drop. In addition, forward orders moderated and capacity utilization also decreased. The employment index decreased further from August’s low level. The NAB added that, “disappointing global growth continued into mid-2014 with GDP expanding by a sub-trend 3% year-on-year and concern over weakness in Japan and the Euro-zone offsetting solid growth in the US and UK.” In addition, the NAB revised GDP forecasts down modestly to 2.8% for 2014/2015 (previously: +2.9%) and 3.2% for 2015/2016 (previously: 3.4%).

FocusEconomics Consensus Forecast panelists see flat growth in fixed investment in 2014, which is up 0.2 percentage points from last month’s forecast. The panel sees investment expanding 0.1% in 2015.

Author: Angela Bouzanis, Senior Economist

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Australia Business Confidence Chart

Australia Business Confidence September 2014

Note: Index of business sentiment; 0-point threshold indicates equal number of positive and negative responses.
Source: National Australia Bank’s Monthly Business Survey.

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