Australia: Business confidence stable in September
October 11, 2016
The business confidence index published by the National Australia Bank (NAB) was stable in September at August’s 6 points. The indicator remained in line with the long-term average of the index and above the 0-point threshold, which means that Australian businesses are optimistic regarding economic conditions in the coming months.
According to the NAB, business confidence has continued to show resilience despite the uncertainty of recent months. Business conditions rose in September and moved further above their long-term trend after hitting their lowest point of the year in August. Business conditions remained particularly strong in the service industries, but continued to weaken in wholesale and retail trade. On the broader implications for the economy, the NAB commented that, “we still expect the economy to slow into 2018 as momentum from commodity exports, housing construction and AUD depreciation is lost.”
Author: Christopher Mc Innes, Economist