17 Oct 2013
Australian business confidence highest in 2 years
FXstreet.com (Barcelona) - Despite an improved NAB business confidence survey release, which came at 3 in Q3 vs -1 in Q2 - highest in 2 years -, business conditions continue to be depressed in Australia, with the latest reading at -7 Q3 vs -6 Q2.
As Alan Oster, Chief Economist at NAB, notes: "Businesses become more confident in the September quarter. This fundamentally appears to be driven by political factors – albeit the lower AUD and rates, together with stronger asset markets would have helped. But these factors have not yet boosted business conditions, which tracked lower to the weakest level in four years."
"Forward indicators remain subdued. Capex expectations also weak, especially in mining. Prices growth implies soft underlying inflation in Q3" Oster adds.
As Alan Oster, Chief Economist at NAB, notes: "Businesses become more confident in the September quarter. This fundamentally appears to be driven by political factors – albeit the lower AUD and rates, together with stronger asset markets would have helped. But these factors have not yet boosted business conditions, which tracked lower to the weakest level in four years."
"Forward indicators remain subdued. Capex expectations also weak, especially in mining. Prices growth implies soft underlying inflation in Q3" Oster adds.