The NAB survey is out and held up nicely over September:
Business conditions remained very strong in September, with the business conditions index holding steady at +14 index points – well above the long-run average (+5). Business confidence has been giving a much more mixed signal than conditions. The latter index ebbed higher, rising 2 points to +7, following a sharp deterioration last month, but that is only modestly above the long-run average for the series and the trend appears turned down again.
According to Mr Alan Oster, NAB’s Chief Economist, “Business conditions at these levels tell us that the business sector in Australia is doing very well. We have certainly seen that reflected to some degree in areas like corporate profits and jobs growth, but other aspects of the economy – such as business investment – have been somewhat disappointing in comparison. In that context, it will be important to keep an eye on the recent softer trend in business confidence”.
