Australia: Business sentiment recovers in July
August 9, 2011
The business sentiment index published by the National Australian Bank (NAB) rose from 0 points in June to 2 points in July. The reading marked a recovery in the index, which had deteriorated uninterruptedly since February, when sentiment bounced on reconstruction prospects following the Queensland floods. With the July result, business confidence edged above the 0-threshold that separates positive from negative opinion, hinting at improving prospects for investment going forward. At a sector level, confidence is at its highest level in the mining sector (+22 points), as well as in the finance/business/property sector (+5 points). Meanwhile, manufacturing marked the lowest reading (-6 points), as a strong Australian dollar continues to negatively affect sentiment in this sector.
Author: Armando Ciccarelli, Head of Data Solutions