Australia: Businesses slightly less optimistic in November
December 10, 2013
The business sentiment index published by the National Australian Bank (NAB) inched down from 6 points in October to 5 points in November. Despite the decrease, the indicator still sits well above the 0-point threshold, which indicates that Australian businesses are optimistic regarding economic conditions in the coming months.
November's figure marks the second consecutive drop in business sentiment, which reached a historical high in September. According to the NAB, the slight decline registered in November shows that, "firms are continuing to reassess their lofty election related expectations." The NAB also stated that the accommodative monetary policy followed by the Reserve Bank of Australia, which includes an expected additional rate cut next year, along with rising asset prices, are helping to boost confidence.
FocusEconomics Consensus Forecast panelists see fixed investment growing 1.2% in 2013, which is unchanged from last month's forecast. The panel sees investment expanding 1.0% in 2014, which is also unchanged from last month's estimate.