Australia: Business confidence reaches 10-month high in July
August 12, 2014
The business sentiment index published by the National Australian Bank (NAB) rose in July from the 8 points tallied in June to 11 points, which marked the highest level in ten months. The indicator moved even further above the 0-point threshold, which indicates that Australian businesses are optimistic regarding economic conditions in the coming months.
According to the NAB, the improvement in business confidence was driven by better business conditions—mainly in sales and profits—and a surge in retailer confidence. In addition, firms continued to be unfazed by the government’s “tough budget”. Yet, much of the growth was narrowly based, with employment only improving moderately. The NAB added that firms continued to report “moderate inflation pressures, although input cost prices accelerated. Both purchasing costs inflation and labour cost pressures lifted, but expected to be temporary.”