Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Business environment still 'favourable' despite slump: NAB

Business environment still 'favourable' despite slump: NAB

Conditions and confidence among Australian businesses has remained "well above average levels" despite suffering a decline in April, according to NAB chief economist Alan Oster.

According to the latest NAB Monthly Business Survey, business conditions dropped by three points to +9 index points over the month, while business confidence declined one point to +6 index points.

However, Mr Oster said while there was an evident drop in both categories over the month, the result was still positive overall.

Advertisement
Advertisement

“Even though business conditions eased this month, they have remained well above average levels for the past year,” he said.

In terms of business conditions, the services industry remained the top performer, while other sectors including – manufacturing and transport – were relatively upbeat.

The survey found the retail industry saw a bounce back in business conditions, having disappointed in recent months.

Changes in business confidence varied across industries, with mining and wholesale the only sectors to show negative confidence levels. The largest gains in confidence occurred in the construction and retail industries.

Mr Oster said he was maintaining an upbeat near-term outlook for the Australian economy.

“Looking through the month-to-month volatility in the survey, these results confirm a continuation of the favourable business environment that has helped to underpin the non-mining recovery,” he said.

“We continue to look for signs that the recovery is broadening, and while evidence of that was a little less compelling this month, solid results for manufacturing and transport – as well as a bounce back in retail – are encouraging.

“Low interest rates and a more competitive currency (even given its recent strength) remain key to ongoing improvement, especially in the context of global economic uncertainty.”

[Related: FHBs continue to lose confidence]

Business environment still 'favourable' despite slump: NAB
mortgagebusiness

 

Latest News

The prudential regulator has launched a consultation on a proposal that would expand its collection remit for home lending data.   ...

The balance sheets of the big four banks are increasingly exposed to residential mortgages, as other forms of revenue generation become less...

Equipment finance lender Axsesstoday has completed a $260-million sale of most of its business and subsidiaries to an affiliate of Cerberus...

FROM THE WEB
podcast

LATEST PODCAST: The economics of mortgage broking

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.