Hot Issues
spacer
ATO issues update on cryptocurrency compliance traps
spacer
How likely is a global trade war?
spacer
Gig economy spike prompts calls for super policy changes
spacer
Australia's vital statistics
spacer
What your age should say about your super
spacer
Downsizing requires holistic tax planning
spacer
Millions of multiple super accounts erode savings
spacer
Why your retirement intentions are critical
spacer
Plans for study into elder abuse
spacer
Our website is really our digital office.
spacer
Dissecting the downsizer contribution
spacer
The Goldilocks effect - Economic and market update 4Q 17
spacer
Rates, inflation and yield - five graphs to help make sense of it all
spacer
Australia. All you need to know to be the expert.
spacer
Potential pension minefields
spacer
Confusion lingers over post-death insurance
spacer
Non-lodgement numbers slashed, 30,000 funds still in ATO’s sights
spacer
Business confidence hits 5-month high: NAB
spacer
New Year resolutions, New Year strategies
spacer
How will downsizer contributions work for SMSFs?
spacer
Where Australia is at. Our leading indicators.
spacer
‘Read the tea leaves,’ brace for cryptocurrency regulation, advisers told
spacer
Power of retiree super dollars
spacer
Beyond share prices
spacer
Financial advice is the leading trigger to review insurance inside Super
spacer
Opinion – 2018 to be the year of the machine
Article archive
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
Business confidence hits 5-month high: NAB

NAB’s business confidence index jumped four points in December as business confidence and business conditions begin to converge.

         

 

According to the latest results of NAB’s monthly business survey, business confidence has “almost” caught up to business conditions.

The business confidence index rose four points to 11 index points in the December 2017, the highest level since July 2017 – while the business conditions index remained unchanged at 13 points.

“This has helped to narrow the perplexing gap between business conditions and confidence evident over the past couple of years, and is an encouraging signal for investment,” NAB group chief economist Alan Oster said in a statement. 

Source: NAB
 

The higher reading in business confidence was “perhaps driven by a stronger global economic backdrop”, as well as strong conditions across all industries bar retail.

“The construction industry is performing well, thanks to support from a large pipeline of residential construction and stronger non-residential building approvals,” Mr Oster said.

“Mining has also gone from being a major drag on the index to experiencing above average business conditions.

“The retail sector meanwhile continues to struggle with slightly negative business conditions, indicating a modest rate of contraction in the industry.”

Retail stood as the only industry that was a “consistent underperformer” and reporting negative business conditions.

Mr Oster also pointed out that employment growth figures were overstated and falling from its “current extraordinary heights”.

“Official employment figures show extraordinary employment growth of over 400,000 over the year to December,” he said.

“The NAB Business Survey employment index on the other hand has not experienced the same wild swings in recent years, and tends to suggest the official figures may be currently ‘overstating’ the degree of job creation.

“The employment index implies employment growth of a little less than 300,000 at present, and a slowdown to around 240,000 per annum over the next six months, or a monthly pace of around 20,000 per month.”

 

BY JESSICA YUN
Source:  NAB
Wednesday, 31 January 2018
www.investordaily.com.au