Australia: Business confidence recovers in September
October 13, 2015
The business sentiment index published by the National Australia Bank (NAB) picked up from one point in August to five points in September. The partial recovery brings the index to its highest level in three months. The indicator is above the 0-point threshold, meaning that Australian businesses are optimistic regarding economic conditions in the coming months.
According to the NAB, businesses felt more confident after the leadership dispute that resulted in parliament appointing a new Prime Minister came to a close last month. Concerns over market volatility also are likely to have abated over the past month, which the NAB expects compounded the positive effect of the political resolution. However, the Bank cautioned that “not all industries saw a lift in confidence, however, with the improvement largely concentrated in transport/utilities (up 14) and personal services (up 12). Both these industries are enjoying the highest confidence levels (at +13 and +16 points respectively), while unsurprisingly mining firms were least confident (at -14).”
Author: Robert Hill, Economist