Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Economy lacking momentum: report

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.

Advertisement
Advertisement

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.

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.

Economy lacking momentum: report
mortgagebusiness

 

Latest News

Regulators could move to set caps on loan volumes for borrowers with high debt-to-income ratios if the housing market recovery continues to ...

The federal Treasurer has welcomed the final budget outcome for the 2019 financial year, which shows that the deficit now equates to zero pe...

The Federal Reserve has slashed rates for the second consecutive month, “reinforcing” the necessity of further cuts to the cash rate in ...

FROM THE WEB
podcast

LATEST PODCAST: New lending launches

Do you think the mortgage market will see more consolidation this year?

Website Notifications

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