Australia: Business sentiment drops to lowest level in eight months
August 13, 2013
Business confidence dropped to an eight month low in July. The business sentiment index, published by the National Australian Bank (NAB), fell from 0.0 points in June to minus 3.0 points in July. The index is now below the 0-point threshold that separates positive and negative sentiment, which suggests deteriorating business conditions in the coming months.
The result was driven by deteriorations in the construction and manufacturing sectors. Mining continues to be the most pessimistic sector by far, with sentiment hovering at a dismal minus 23 points.
FocusEconomics Consensus Forecast panellists see fixed investment growing 3.4% in 2013, which is down 0.5 percentage points from last month's forecast. The panel sees investment expanding 3.2% in 2014.
Author: Armando Ciccarelli, Head of Data Solutions