12 Nov 2013
Australian business confidence deteriorates, still in positive territotry
FXstreet.com (Barcelona) - National Australia Bank's Business Confidence (Oct) came at 5 vs 12 last month, while Business Conditions (Oct) remained unchanged at -4 vs -4 prior month.
According to Alan Oster, Group Chief Economist at NAB: "Firms reassess their confidence on the outlook as business conditions undershoot again. Capacity utilisation falls sharply – especially in manufacturing, construction, mining and retail – despite low interest rates and improved housing and equity markets."
Oster adds: "Other forward indicators deteriorate, paring back earlier gains and implying a continuing soft outlook for domestic demand. Price inflation outpaced by costs growth suggesting margins still tightening. Rate cut still expected in 2014 but – given RBA comfort with current settings – delayed till mid 2014. Unemployment key to how many cut(s) required."
According to Alan Oster, Group Chief Economist at NAB: "Firms reassess their confidence on the outlook as business conditions undershoot again. Capacity utilisation falls sharply – especially in manufacturing, construction, mining and retail – despite low interest rates and improved housing and equity markets."
Oster adds: "Other forward indicators deteriorate, paring back earlier gains and implying a continuing soft outlook for domestic demand. Price inflation outpaced by costs growth suggesting margins still tightening. Rate cut still expected in 2014 but – given RBA comfort with current settings – delayed till mid 2014. Unemployment key to how many cut(s) required."