Australia business conditions jump to all-time high in October - survey
Reuters
Published Nov 14, 2017 00:34
Australia business conditions jump to all-time high in October - survey
SYDNEY (Reuters) - A measure of Australian business conditions surged to its highest on record in October as strength in sales and profits across a range of industries completely overwhelmed protracted weakness in the retail sector.
National Australia Bank's (AX:NAB) survey of more than 400 firms showed its index of business conditions climbed 7 points to +21 in October, quadruple its long-run average of +5 and the highest since the survey began in 1997.
The survey's often volatile measure of business confidence held steady for once at +8.
"Overall, results from the Survey indicate that the business sector in Australia is very strong at present, which is having positive spill-overs into the labour market and investment," said NAB group chief economist Alan Oster.
The strength was broad based across States and industries, with even retail seeing some modest improvement having lagged for months.
This survey has been running hot for months now in stark contrast to the mood of consumers, who were fretting over rising utility costs and subdued wage growth.
Still, there has been a pick up in sentiment in the most recent consumer surveys with an ANZ-Roy Morgan poll out on Tuesday hitting a seven-week top.
Household spending accounts for around 56 percent of annual economic output (GDP) so any improvement would be welcomed by policy makers.
The Reserve Bank of Australia (RBA) last week reaffirmed its expectation that economic growth would accelerate to around 3 percent over the next couple of years, even as it trimmed forecasts for inflation.
Businesses certainly seemed to be doing well with NAB's measure of sales jumping 11 points to +30 in October, while profitability climbed 9 points to +26.
The construction sector reported booming conditions thanks to strength in public investment and housing, while mining had recovered to be one of the best performing industries this year.
The survey's measure of employment held at a relatively high +7 in October, firm enough to put more downward pressure on the unemployment rate. Labour costs remained subdued in the month as did measures of purchase costs and retail prices.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.