Australia: Business confidence stable in February
March 8, 2016
The business confidence index published by the National Australia Bank (NAB) remained unchanged in February, from January’s three points. Although January’s reading is below the long-run average, the indicator still lies above the 0-point threshold, which means that Australian businesses are optimistic regarding economic conditions in the coming months.
The NAB mentioned that the business confidence has been stable in recent months, as the drivers of Australian growth – the low dollar and an accommodative fiscal stance – have been resilient. However, their impact is limited by outside factors that keep business confidence from climbing, such as uncertainty in financial markets and China’s ominous slowdown. The NAB noted that confidence was heterogeneous across industries, stating “across industries confidence remains quite mixed, although all but two (mining and wholesale) were positive,”
Author: Robert Hill, Economist