Powered by MOMENTUM MEDIA
subscribe to our newsletter
Business confidence hits two-year low

Business confidence hits two-year low

NAB’s ASX300 business survey for the fourth quarter of 2014 found confidence levels fell to their "weakest" point since 2012, falling 13 points to -3.

The decline was driven by large mining firms, with overall confidence weakest in mining and construction by some margin, NAB Group chief economist Alan Oster said.

The bank also found business conditions moderated in the fourth quarter, with the index falling three points to +8.

Advertisement
Advertisement

“Weaker business conditions reflected a drop in profitability and slightly weaker trading conditions, which offset stronger, albeit negative, employment conditions,” Mr Oster said.

NAB highlighted that these results mirror the results from its broader business survey which shows business conditions continue to portray a “patchwork economy”.

“Large falls in the mining and transport sectors offset solid gains in recreation and retail, while big construction firms continued to report the weakest conditions overall, possibly reflecting the pullback in mining-related construction,” Mr Oster said.

NAB also pointed out the falling value of the dollar appears to be providing momentum for higher export sales and export orders.

“After falling since mid-2014, export sales for ASX300 firms increased in Q4, in line with the large depreciation in the AUD that took place during the survey period in December," NAB said in a statement.

“The lower AUD has also provided momentum for export orders among larger firms. This is in contrast to the broader economy where export orders have fallen."

Business confidence hits two-year low
mortgagebusiness

 

Latest News

The managing director and CEO of the financial services group has stepped down from his post, effectively immediately. ...

Financial regulators worldwide are increasingly focusing on climate change risks and disclosure reporting in finance, with the trend expecte...

Non-banks have hit back at “unfounded” claims from the CEO of an industry association, who has suggested that under APRA’s proposed ch...

FROM THE WEB
podcast

LATEST PODCAST: Economists predict a bottom to the property market slump

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

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