AUD: Improving business conditions – Monthly business survey – NAB
By FXStreet FXStreet (Delhi): Research team at National Australia Bank in their monthly business survey for August, note that the Australian business conditions has improved considerably even as confidence has taken a hit due to global financial markets turmoil August 2015.
Key Quotes
“Business conditions point to a further improvement in the non-mining economy, even as jitters in financial markets weigh on confidence. The conditions index jumped 5 points to +11 in August, after losing a little ground last month, lifting the trend index to its highest level since late 2009.”
“By component, both trading conditions and profitability recorded a notable improvement, but the employment index remains at very subdued levels. This outcome adds to the mounting evidence that AUD depreciation and record low interest rates are having the desired effect and helping to offset the weakness in mining.”
“Even so, outcomes vary significantly by industry. Services sectors continue to outperform, while retail has improved considerably.”
“Confidence pared back further in August (from +4 to +1), unwinding the post budget gains and hitting its lowest level since mid-2013. While confidence tends to track conditions quite closely, recent financial market ructions and China growth concerns appear to have had an unnerving effect on business – albeit not …read more
Source:: FX Street
