— National Bank of Australia
The mood of Australian businesses deteriorated markedly last month, official figures showed on Tuesday. According to the National Australia Bank's May business survey, the overall NAB Business Confidence Index dropped to 7 in May from the preceding month's 13 points. However, the Index remained above its long run average of 5 points. Furthermore, the NAB noted that despite the fall in confidence the general outlook for the Australian economy among businesses remained optimistic. In the meantime, the Business Conditions Index fell just 1 point to 12 during the reported month. Last week, the Australian Bureau of Statistics reported that the domestic economy expanded at a 0.3% rate on a quarterly basis in the three-month period to March, following the previous quarter's expansion of 1.1% and raising concerns over a possible rate cut by the Reserve Bank of Australia. Tuesday's data also showed that the slight fall in the Business Conditions Index was mainly driven by construction, finance, property and business services. The Australian Dollar was little changed following the release of the survey results.
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