Australia: Business confidence ticks up in AprilChristian Fernsby ▼ |
Australia This is again likely due to the ongoing weakness in consumer spending
The business confidence index produced by National Australia Bank (NAB) rose almost imperceptibly to minus 0.3 points in April from March’s revised minus 0.6 points (previously reported: minus 0.4 points), which had marked the weakest result in over five years.
Looking at the sector-by-sector picture, confidence was lowest in the wholesale sector, and was negative also in the retail sector.
This is again likely due to the ongoing weakness in consumer spending, weighed down by falling house prices, sluggish wage growth and a high stock of household debt.
Meanwhile, business conditions deteriorated significantly in April, as a result of worse trading conditions and profitability.
Moreover, employment expectations plunged and moved to a below average read; forward orders were stable but still in negative territory; while capacity utilization ticked up.
FocusEconomics Consensus Forecast panelists expect fixed investment to expand 2.2% in 2019, unchanged from last month’s estimate, before accelerating slightly to 2.5% in 2020. ■
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