Australian business conditions remain close to the boom times of the mid-2000s and confidence has recovered. According to NAB’s latest monthly business survey of 400 firms in late September, its Business Conditions Index remained unchanged at 14 (after revisions), while its Business Confidence Index increased by 2 points to 7.
Business confidence had taken a minor battering in August which was the result of a change in customer demand, margin pressure and government policy. The 2 point increase in September took the index back to just above its long-term average.
ANZ senior economist Daniel Gradwell thought the report provided reason to be positive about the Australian economy’s outlook. “The details of the September report are encouraging and suggest that employment growth should remain solid. We see further evidence that the post-mining boom adjustment is nearly complete, and construction in the non-mining states will be an important part of Australia’s growth.”
Not every economist shared the ANZ’ economist’s view and Westpac senior economist Andrew Hanlon was not convinced. “The NAB business survey for September was positive overall, but conditions are uneven, which is concerning for the outlook.”
