Australia – National Australia Bank business confidence for October, 4

  • prior was 5

Business conditions for October, 13 … highest since early 2008

  • prior 1
  • Stronger sales, profits and employment
  • But improvement in conditions was broad based across measures of activity and by industry
  • Profitability up 14 points to +15
  • Employment up 7 points to +2
  • Forward orders up to +4 (the rise in construction, is a positive sign for future growth)
  • Outlook for capital spending +4 points to +9 (long-run average is +5)

Preview is here: Australia – NAB business confidence data due for release today

note – the NAB survey for this is of 400 firms

This is actually a very strong result. Although the ‘confidence’ dipped a point the jump in ‘conditions’ is the biggest on record (since the survey began in 1998).

  • Confidence index was is still close to its 20 year average, but a low since August 2013 (& the lowest since the the election bounce)
  • The conditions index has jumped above the 20 year average (4.4) … And it’s the conditions index that has a better correlation with growth

AUD ticking higher on the data … and why not?