Australia: Business confidence stable in May
June 10, 2014
The business sentiment index published by the National Australian Bank (NAB) was stable at April’s 7 points in May. Thus the indicator remained above the 0-point threshold, which indicates that Australian businesses are optimistic regarding economic conditions in the coming months.
Businesses were slightly more pessimistic regarding current business conditions. As the NAB put it, “together with the poor conditions reported by wholesale – a bellwether industry – it suggests little scope for improvement in domestic demand.” Among the categories that registered an optimistic surge, forward orders saw the greatest increase in optimism. According to the NAB, the surge in forward orders came in as a response of a re-stocking process.