Australian Business Confidence fell for the first in five months in September according to the National Australia Bank (NAB), dropping four points to a reading of 14 from a six-year high of 18 recorded in the previous month. The sub-gauge measuring firms’ profitability led the metric lower, falling 7 points. NAB chief economist Alan Oster said that it was “probably inevitable” that some weakening was due after the steady surge in confidence in recent months, adding that “our view was, and still is, that the readings for confidence are somewhat unrealistic.” The survey that served as the basis for the report was conducted before the central bank unexpectedly raised interest rates last week, suggesting confidence may continue lower in the months ahead as companies prepare to cope with higher borrowing costs. NAB’s Business Conditions gauge of the current hiring, sales, and profits environment also fell, registering the first decline in four months.
For streaming currency market news and analysis, please visit http://forexstream.dailyfx.com
To reach Ilya regarding this article or to subscribe to his email distribution list, please contact ispivak@dailyfx.com
Al Bawaba
