Australia: Business sentiment drops for a second consecutive month in June
July 10, 2012
In June, the business sentiment index published by the National Australian Bank (NAB) dropped to minus 3.0 points from 2.0 points in May. The June reading marks the second consecutive month in which business confidence sits below the 0-point threshold that separates positive from negative opinion, suggesting a deterioration in investment prospects going forward. At a sector level, confidence dropped markedly in mining, mostly reflecting the deterioration in growth prospects for China - the main source of demand for Australian commodities. In fact, mining is the sector currently showing the lowest confidence level (-14 points), whereas recreation and services is the highest ranked sector (-1 points).
Author: Armando Ciccarelli, Head of Data Solutions