Australia: Business conditions remain buoyed by the non-mining recovery – NAB

By FXStreet FXStreet (Delhi) – Research Team at NAB, notes that the latest NAB Monthly Business Survey suggests the apparent recovery in the non-mining economy has remained on track, with business conditions holding up at above average levels for the past nine months.

Key Quotes

• “The NAB Business Conditions Index remained at +10 points in the month of November – the fourth consecutive month of conditions at this level – which is well above its long-term average (+5 points).

• According to NAB Group Chief Economist Alan Oster: “This is basically another strong result for the NAB Survey, which in conjunction with signs of improvement in the labour market, means we can put more faith in the building non-mining sector recovery”.

• Interest rate and AUD sensitive industries have generally outperformed, while improvements in areas such as retail in November are an encouraging sign that the recovery is becoming more entrenched. In contrast, mining continues to weaken. This is also reflected in variations across states.

• “In fact, the survey is showing a widening gap between deteriorating mining/mining services (-21) and the rest of the economy” said Mr Oster.
• However, business confidence has been disappointingly muted, despite recouping some of the losses from …read more

Source:: FX Street