Australia: Business confidence recovers notably but remains deeply negative in May
June 9, 2020
The business confidence index produced by National Australia Bank (NAB) rose to minus 20.0 points in May, from minus 45.5 points in April. That said, the index remained entrenched deeply below the zero-point threshold, indicating that Australian businesses are mostly pessimistic regarding economic conditions going forward, due to containment measures to limit the spread of Covid-19.
Meanwhile, business conditions improved from April, on the back of less negative profitability, trading conditions and employment prospects. Furthermore, forward orders recovered some lost ground although exports continued to decline.