The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Australia's political leadership changes, are one of the key causes of the fall in business confidence, according to NAB’s latest monthly survey.
The survey was conducted just after the Australian Liberal Party voted in Scott Morrison as its new leader, and Australian prime minister which eocnomists say could have played a role in the results.
Business conditions however, measured above average and rebounded jumping 2 points to 15. This was due to increases in the profitability and trading indices rising by 6 points.
Confidence is the highest in the mining industry at 20 points, shortly followed by the construction industry at 9 points, while wholesale and manufacturing remain the lowest.
Business investment
According to NAB’s survey, business investment is an important factor for the economic outlook over next few years, with business investment expected to stabilise and increase. This is due to growth in mining sectors.
The survey shows there’s likely to be further supporting growth and new investment in the mining sector, as well as a higher level of ‘sustaining’ capex post-boom.
Investment in the retail sector is below average, which is likely due to structural changes in the industry, however investments in the sector show more promise.
.jpg)
