Australia: Business sentiment hits 0-point threshold in September
October 9, 2012
In September, the business sentiment index published by the National Australian Bank (NAB) rose to zero points from minus 3.0 points in August (previously reported: -2.0 points). With the September reading, sentiment hit the 0-point threshold that separates positive from negative opinion, suggesting stable investment prospects going forward. At a sector level, confidence improved across the board, with the strongest increase experienced in the construction sector (+4.0 points), reflecting prospects of further interest rate reductions by the Reserve Bank of Australia and a stabilisation in house prices. Finance/business/property, recreation and personal services as well as transport and utilities are the sectors currently showing the highest confidence level (all at +3.0 points), while mining (-8.0 points) is the lowest ranking sector.
Author: Armando Ciccarelli, Head of Data Solutions