Australia: Businesses confidence unchanged in December
January 28, 2014
The business sentiment index published by the National Australian Bank (NAB) remained at 6 points in December, the same result that was tallied in November. As a result, the indicator is still well above the 0-point threshold, which indicates that Australian businesses are optimistic regarding economic conditions in the coming months.
According to the NAB, "confidence has remained surprisingly elevated following the post-election jump, and could potentially remain at these levels for longer than previously thought." The business conditions component improved markedly in December, as did expectations for the profitability of businesses. However, businesses were more pessimistic regarding the situation of stocks. Expectations regarding employment improved, although, "the labor market is still weak and will remain a headwind as labor-intensive mining investment peaks."
FocusEconomics Consensus Forecast panelists see fixed investment growing 1.3% in 2014, which is unchanged from last month's forecast. The panel sees investment expanding 1.7% in 2015.