Australia: Business confidence rebounds, conditions elevated - Westpac

Andrew Hanlan, Research Analyst at Westpac, notes that the NAB business survey paints a positive picture overall for the Australian economy as we enter 2018. That said, conditions are still uneven, with weakness in consumer sectors, he further adds.

Key Quotes

“In December, the business conditions index was steady at an elevated +13, well above the long-run average of +2.”

“Business confidence rebounded, up 4pts to +11, a reading above the long-run average of +5. This brings confidence more into line with business conditions and occurs against the backdrop of improved confidence in the global economy.”

“Business conditions remain uneven. Construction, and associated sectors (eg manufacturing) continue to perform strongly, boosted by a lift in public works and private non-residential projects, against the backdrop of stronger world growth. The mining sector ended the year on a positive note, benefitting from current elevated commodity prices.”