Australia: Business conditions down, confidence up – Westpac

Andrew Hanlan, analyst at Westpac, points out that Australia’s business conditions were down by 2pts to +2, while business confidence was up by 2pts to +4.

Key Quotes

“The NAB business survey revealed that weak conditions extended into the September quarter. Both business conditions and business confidence remain at below average levels. The extent and persistence of weakness over the past half year suggests that further policy stimulus will be needed.”

“The July survey is consistent with other indicators and is ahead of the likely bounce in retail sales - albeit temporary - associated with the modest income tax cuts.”

“Business conditions fell by 2pts to be at only +2. This well below average reading is in line with the average of the past three months.”

“In July, business confidence increased by 2pts to +4. This reading is in line with the levels prevailing from late 2018 into early 2019.”

“Confidence was particularly soft in the two months ahead of the Federal election, followed by a fleeting bounce in May, following the surprise outcome.”