Australia: Business confidence strengthens in June
July 11, 2017
The business confidence index produced by the National Australia Bank (NAB) rose to 9 points in June, up from the 8 points registered in May. The indicator now sits further above its long-term average of 6 points and far above the 0-point threshold, which means that Australian businesses are optimistic regarding economic conditions in the coming months.
According to the NAB, the improvement shows better business conditions, despite a negative month for the mining sector. Business conditions rose to pre-crisis levels, supported by strong trading conditions, indicating that the retail sector may finally be on the up. On the broader implications for the economy, the NAB commented, “we expect economic growth to accelerate in H2 2017, following weather related disruptions in H1 this year, but the longer-term outlook could easily underperform the RBA’s upbeat expectations as important growth drivers (LNG exports, commodity prices and housing construction) begin to fade.”
Author: Christopher Mc Innes, Economist