- Reserve Bank of Australia
Australian business confidence deteriorated last quarter, while business conditions and investment intentions improved, the National Australia Bank data showed. The business confidence index declined to zero in the three months through September, down from 4 in the June quarter. A reading above zero shows optimism among Australian firms, while a reading below zero signals pessimism. Nevertheless, business conditions improved notably, with the corresponding gauge rising from 4 to 11 in the reported period. In addition to that, NAB's survey of roughly 1,000 companies revealed that business investment intentions increased marginally in the third quarter, with the investment intentions index climbing to 20, up from 18 in the preceding three-month period.
As Australian firms struggled with effects of the mining-investment slowdown, business confidence has been unstable over the last few years. However, there have been some evidence the nation's economy is turning a corner, with growth in non-mining sector starting to accelerate. On top of that, policy makers have also sounded a more upbeat tone on the economy in recent months. RBA Governor Glenn Stevens welcomed developments in the labour market over the last year despite the economy growing at a below-trend pace.
© Dukascopy Bank SA