Australia: Business sentiment turns pessimistic in April
May 13, 2013
In April, the business sentiment index published by the National Australian Bank (NAB) dropped to minus 2.0 points from the plus 2.0 points seen in March. With the April drop, sentiment fell below the 0-point threshold that separates positive from negative opinion for the first time in five months.
The drop in business sentiment was broad based, as almost all sectors deteriorated compared to the previous month. Mining, in particular, recorded the strongest fall amid the recent moderation in commodity prices. The only exceptions were retail and wholesale, as these sectors are "possibly still looking to benefit from previous (and future) interest rate cuts".
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