NAB Survey: Slight drop in business confidence, optimism prevails
Business confidence remains high albeit a very slight tinge of wariness in the country's business sector. This is according to the latest of the National Australia Bank's quarterly business survey published today.
According to the survey of around 1000 participants from key business sectors showed that business condition improved by 7 index points, higher than the 5 attained before.
Nevertheless, the optimism to conduct business dropped one index point to 10 points.
"The survey reflects the multi-speed economy now emerging, with conditions much stronger in mining and transport than in retail and manufacturing, while construction (might be transitioning) from dependence on public to private sector demand," NAB said in the report, released on Tuesday.
The slowdown in the delivery of a government stimulus package, which focused on infrastructure, also slightly affected perception that conditions for better access to services and delivery of products are also not present. This is evident in the conditions noted in manufacturing and wholesale, while there was only a marginal decline in recreation. Moreover, manufacturing, grew just one index point, reflecting the strength of the Australian dollar, which late last week touched a 27-year high of 99.18 US cents.
Forward orders, stocks and capacity utilisation all improved, with the report suggesting the economy may be starting to emerge from the weakness shown in the early part of the quarter.
Industries contributing to the improvement in overall conditions included mining, construction, finance, and transport and utilities.
In September a notable strength came from the mining sector at 57 points and transport and utilities at 25 points.
"Although mining sector conditions have been particularly volatile over recent months, the sectors trend has remained firmly positive," the survey said.