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%).