Australia: Business sentiment plunges in June
July 12, 2011
The business sentiment index published by the National Australian Bank (NAB) dropped from 6 points in May to 0 points in June. The reading marked the sharpest drop since December last year, when the index plunged to minus 3 points, as the floods in Queensland dragged business sentiment down. With the June fall, the fourth in a row, business confidence hit the 0-threshold that separates positive from negative opinion, suggesting uncertain prospects for investment going forward. At a sector level, confidence is at its highest level in the mining sector (+7 points), as well as in transport and in the finance/business/property sector (both +5 points). Meanwhile, construction marked the lowest reading (-14 points), followed by manufacturing (-2 points), as a strong Australian dollar continues to negatively affect sentiment in this sector.
Author: Armando Ciccarelli, Head of Data Solutions