Business Confidence – July 2011
Tuesday, August 30, 2011
Business confidence levels improved a little in July, up 2 to +2 index points.
(An Index above zero indicates that optimists outweigh pessimists)
Heightened concerns over a US debt default (which was of particular concern during the survey period), general uncertainty about global growth, as well as concerns for rising interest rates domestically appear to be weighing on business confidence levels. The current level of confidence remains below the average.
Business confidence by industry. Business confidence improved significantly in construction, after deteriorating sharply in June. Mining also recorded a pickup in confidence (+22), with sentiment in the industry continuing to exceed all other industries. In contrast, confidence levels softened noticeably in transport & utilities, manufacturing and wholesale.
Overall, in trend terms wholesaling, construction and manufacturing have the weakest confidence levels.
Source: National Australia Bank Monthly Survey and Economic Outlook
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