Powered by MOMENTUM MEDIA
subscribe to our newsletter

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.

“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”.

Advertisement
Advertisement

“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

PROMOTED CONTENT


>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.

“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 non-bank lender has announced the launch of specialist interest-free finance option for renewable energy technology. ...

The ME Bank acquisition will widen Bank of Queensland’s customer base to more than 1 million, according to new data from Roy Morgan. ...

The “high end” of the property market in the capital cities has benefited the most from the recent housing upswing, jumping 2.7 per cent...

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: How the broking industry has evolved - and what's next for Aussie

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.