Australia: Business sentiments reverts to negative territory in August
September 10, 2012
In August, the business sentiment index published by the National Australian Bank (NAB) dropped to minus 2.0 points from plus 3.0 points in July. With the August reading, sentiment sits below the 0-point threshold that separates positive from negative opinion for the third time in the last four months. The August reading suggests a deterioration in investment prospects going forward. At a sector level, confidence dropped broadly across the board, with the steepest slide experienced in the mining sector (-14 points), reflecting a weaker outlook for commodity prices. Mining is also the sector currently showing the lowest confidence level, together with construction (both at -9 points), whereas recreation and services is the highest ranked sector (+3 points).
Author: Armando Ciccarelli, Head of Data Solutions