- Philip Lowe, RBA Deputy Governor
Australia's business confidence bounced back last month following the Federal Government's leadership change, the NAB's monthly business survey showed. The index of business conditions came in at above-average +9 in September, while confidence rose by 4 points to +5. The sub-index of sales dropped by four points to +15, remaining firmly above its long-term average. At the same time profitability declined by two points to +8. However, there was a notable improvement in the outlook for hiring, with the employment measure climbing five points to +4, reaching the highest level in four years. Moreover, the survey's index of capital expenditure increased to +7 in the reported month, supported by the services sector. The Reserve Bank of Australia has been anticipating a recovery in spending by companies outside of the mining sector, which is faltering due to weaker commodity prices.
Meanwhile, RBA Deputy Governor Philip Lowe reiterated the central bank's opinion that the lower level of the Aussie Dollar over the past few years has helped the nation's economy to withstand fading of the mining investment boom. Over the last year the Australian Dollar has depreciated from around $0.90 versus the US peer to below $0.70 in recent weeks and has also declined dramatically on a trade-weighted basis over the same period.
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