Australia: Business sentiment soars in September
October 10, 2013
In September, business confidence reached the highest level on record since April 2011. The business sentiment index, published by the National Australian Bank (NAB), rose from 4.0 points in August to 12.0 points in September. As a result, the index rose even higher above the 0-point threshold that separates positive and negative sentiment, showing that Australian businesses remain optimistic regarding economic conditions in the coming months.
The Liberal Party's recent victory in the federal elections played a role in pushing up businesses expectations regarding future economic conditions. Additionally, China's recent increase in demand (an important source of exports for Australia), drove an improvement in economic sentiment in the mining sector and contributed to the overall improvement in business sentiment.
FocusEconomics Consensus Forecast panelists see fixed investment growing 0.3% in 2013, which is down 0.7 percentage points from last month's forecast. The panel sees investment expanding 1.7% in 2014 which is down 0.8 percentage points from last month's estimate.