Australia: Business confidence weakens in July
August 11, 2015
The business sentiment index published by the National Australia Bank (NAB) fell from eight points in June to four points in July, marking the first deterioration in five months and the lowest reading in three months. Despite the deterioration, the indicator is still above the 0-point threshold, meaning that Australian businesses are optimistic regarding economic conditions in the coming months.
According to the NAB, concerns over external risks, including China’s slowdown and weak recent data from India, have taken their toll on confidence in July. Firms in the mining and construction sectors recorded the most significant deteriorations. The Bank further noted that, “despite weakening in July, the trend in business confidence remains a positive one, with the trend index holding up around its long run average level.”
Author: Robert Hill, Economist