Business Confidence High
Business Confidence High – Business confidence and conditions strengthened in February a four month high, but growth remains below the highs seen in late 2009, a survey shows.
But businesses were caught unprepared for the surge in February, as inventories declined and hiring slowed.
The National Australia Bank (NAB) business confidence index gained four points to plus-19 points in February.
It was the survey’s highest level since November 2009 when it also touched plus 19 points, which at the time was a seven-year high.
“The latest survey indicates at least a partial bounce back in both confidence and conditions,” NAB group chief economist Alan Oster said.
“It is possible that, just as the extent of the slowing in January may have been unexpected, so the uptick in February took many businesses by surprise, with some de-stocking in the face of stronger trading conditions and a slight fall in the employment index.”
Business and trading conditions grew five points to plus eight in the month, while profitability was at plus seven, up from plus two in January.
The employment index slid one point to plus five but was still above long term average levels, the survey said.
Confidence rose sharply in mining, retailing, wholesaling and transport.
Business Confidence High
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