National Australia Bank December quarter Business Survey, Confidence at 4
- Prior was 1, revised from flat at 0
- Conditions at 9 (10)
- Capex intentions for the next 12 months at 22 (prior 20)
- Forward orders remained at quite elevated levels
- As did expectations for business conditions in 3 and 12 months' time
- A modest lift in capacity utilisation and capex plans for the next 12 months could be hinting at a much needed lift in non-mining business investment, although high 'hurdle rates' of return to investment will remain a challenge
- Employment intentions have stayed elevated
Comments from NAB Group Chief Economist Alan Oster:
- Survey confirming yet again that despite the issues facing the mining sector, Australia continues to enjoy a relatively healthy, vibrant and adaptive economy
- Global market volatilities highlight the growing risks to the outlook ... "The longer these market volatilities persist, the more likely we will see an impact via sentiment channels"
- "firms ... remaining quite upbeat about the outlook, which suggests good things for the labour market and future investment"
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