Powered by MOMENTUM MEDIA
subscribe to our newsletter

Economy lacking momentum: report

Business conditions have remained steady in Australia, which has disguised stark state-by-state differences, according to a monthly survey by NAB.

The survey found that business conditions declined by one point to +4 during December 2014 – above the long-run average of 0, which dates back to 1989.

The decline in business conditions was evident across three components: trading conditions, which fell from +10.5 to +9.5; profits, which fell from +5 to +4; and employment, which fell from 0 to -1.

Business conditions were mixed across the six states, with Victoria and New South Wales reporting above-trend conditions at +7 and +5 respectively.

There was a loss of momentum for conditions in Western Australia, moderating to +3, while the conditions index was at or around zero in Queensland, South Australia, and Tasmania.

Advertisement
Advertisement

The survey also showed that the business confidence index increased by one point to +2, but still remains below the long-run average of +5.

Andrew Hanlan, a senior economist at Westpac, said the survey results show “a patchwork economy with little to no momentum building”.

“By way of historical context, the conditions index strengthened during the second half of 2013 from around -6 as the economy responded to RBA rate cuts,” he said.

“However, in 2014, conditions trended sideways from +3 in January to +4 in December, to average +3 for the year.

“This lack of domestic momentum is against a backdrop of global weakness, stability in official interest rates and a tightening of fiscal policy,” said Mr Hanlan.

PROMOTED CONTENT


Economy lacking momentum: report
mortgagebusiness

Latest News

The value of mortgage approvals swelled to a new record high in November, surpassing $24 billion, the ABS has found. ...

The construction of new homes in Australia is forecast to “get worse before it gets better”, according to Deloitte Access Economics, but...

The non-major bank has made an appointment to the newly created role of group general counsel and company secretary. ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: A new record in mortgage approvals

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.