"Much of the improvement in confidence reflects the unwinding of concern surrounding a number of external risks"
- National Australia Bank
Confidence among Australian businesses, excluding the farming industry, rose sharply in the first quarter of 2013, as record-low interest rates lifted the economy, the National Australia Bank said Thursday. A quarterly gauge of business confidence rose to +2 in the first three months, up 7 points from -5 in the fourth quarter of 2012. The survey also showed that a measure of business conditions improved to a level of -2 in the March quarter, up from -6 in the preceding quarter. The improvement in investors' mood rounds out the picture of an economy recovering from a slowdown last year and supports the RBA decision not to cut interest rates further this year.
"Much of the improvement in confidence reflects the unwinding of concern surrounding a number of external risks, including the U.S. fiscal cliff, a hard landing in China and the reduced risk of a further European crisis," NAB said. "While equity price rises and lower borrowing rates are also likely to have helped, it appears the still high Australian dollar remains concerning for the trade dependent industries."
"Australia has been very, very successful in riding away from some of the economic situations that have been going on around the world," Regus Asia-Pacific communications manager Jon Walsh said.
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