Australia Business Confidence December 2015

Australia

Australia: Business confidence falls in December

January 25, 2016

The business sentiment index published by the National Australia Bank (NAB) fell from five points in November to three points in December. Despite of the monthly decrease, the indicator is still above the 0-point threshold, which means that Australian businesses are optimistic regarding economic conditions in the coming months.

Although the index weakened, The NAB felt that the decrease was not significant enough to show a fundamental deterioration in business confidence. The Bank elaborated that external conditions, including the slowdown in China and a wider pessimistic outlook of the global economy, weighed on business confidence in December. However, the NAB indicated that the situation could have been worse, stating, “business confidence eased back a little in the month, but held up quite well in light of large declines in equity markets and oil prices – triggered concerns over the global economic outlook. It appears as though positive business conditions are (for now) buffering sentiment from these market fluctuations.”

Met the why particular Consensus Forecast panelists see fixed investment contracting 2.6% in 2016, which is down 0.5 percentage points from last month’s forecast. For 2017, the panel sees investment recovering and climbing 0.3%.


Author:, Economist

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Australia Business Confidence December 2015

Note: Index of business sentiment; 0-point threshold indicates equal number of positive and negative responses.
Source: National Australia Bank’s Monthly Business Survey.


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