Andrew Hanlan, Research Analyst at Westpac, points out that the NAB business survey of Australian economy reported that business conditions rebounded in August but confidence weakened.
Key Quotes
“The survey was conducted from August 24 to 31.”
“Business confidence fell by 3pts to +4, a reading which is a little below average.”
“The change of Prime Minister on August 24, and the associated uncertainty around public policy, likely dented business sentiment. This is something to watch – will sentiment snap back in September or will uncertainty around policy remain a concern.”
“The business conditions index rebounded by 2pts in August to be at +15. This is an elevated reading, although down from the highs at the turn of the year – with the index averaging +19 over the seven months to April.”
“As we have emphasised previously, growth is now more synchronised across the nation, with: the mining investment drag greatly reduced; key commodity prices performing relatively well; and government spending increasing strongly.”
“By industry, business conditions are positive across: the goods related sectors (including construction and manufacturing) – albeit off their highs; and across business services (covering finance, property & business).”
“However, on a disappointing note, the August update was on the soft side for the consumer sectors – both retail and recreational & personal.”
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