Business conditions improve: NAB

NAB's quarterly business survey showed business conditions are improving despite confdence at a low ebb thanks tp political and financial market turmoil.

Things are looking up for the Australian economy, according to National Australia Bank's latest quarterly business survey.

The survey showed the non-mining parts of the economy gathered momentum in the September quarter and the outlook beyond that appeared "notably better", NAB's economists said on Thursday.

Forward orders were at their most buoyant since 2009, while expectations for conditions both three and 12 months ahead had picked up as well.

The survey's measure of confidence among businesses failed to respond to the better conditions, instead falling as low as it's been since late 2013.

NAB's economists put this sag in confidence down to uncertainty caused by speculation about the Liberal Party leadership during the quarter, as well as financial market turmoil in emerging economies, although businesses themselves identified subdued demand as the main brake on their confidence.

But there was some good news in that regard.

The improvement in conditions in the September quarter suggested demand growth outside the mining sector has strengthened.

"Forward orders picked up notably in the quarter, indicating growing momentum for business in the near-term," NAB's economists said.


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Source: AAP



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