Australian business conditions down in October

Sydney, Nov 8: Australian business conditions weakened in contrast with increased confidence in October, according to survey results released Tuesday by National Australia Bank (NAB).

The NAB’s Monthly Business Survey for October revealed that business conditions index fell three points to minus one from two points in September, while its business confidence index rose three points to two points from minus one in September, reported Xinhua.

Speculation about a possible interest rate cut from the Reserve Bank of Australia and an improving economic outlook in the US and Europe were likely behind the improved business confidence in October, NAB said.

NAB said the results were consistent with underlying demand, together with gross domestic product (GDP) growth of 3.25 percent in the December quarter.

The survey showed business conditions weakened across a number of sectors in October, with falls in mining and transport activity, and a lull in manufacturing, retail and wholesales.

Activity in the construction sector was stronger in October, reflecting the reconstruction effort in Queensland after summer’s natural disasters.