This week, we have experienced a strange phenomenon. On Tuesday, the NAB’s business survey reported that business conditions are running at their strongest level since the Global Financial Crisis (GFC), whereas yesterday Westpac’s consumer sentiment survey revealed that “pessimists” have outnumbered “optimists” for nine consecutive months – the longest run of weak readings since the GFC.
The below chart from IFM Investors nicely encapsulates the gaping divide between consumers and businesses:
