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

Any advice contained in this website is of a general nature only and does not take into account your circumstances or needs. You must decide if this information is suitable to your personal situation or seek advice.

Rolanda Adams Financial Services have been my financial advisers for over 20 years. I have always found them to be highly intelligent, knowledgeable and professional in what they do. Rolanda Adams Financial Services is accessible at all times and patiently explain terms that I do not fully understand. I can highly recommend Rolanda Adams Financial Services and it is a pleasure to do so. I do this with the utmost confidence. Marcia Montgomery (Retiree – home duties and ex-clerk with Water Board)

I retired Oct 2012, and seeking Financial Advice for my retirement funds, I decided to have Rolanda Adams Financial Services look after my financial affairs, and so happy I did. Since my retirement I am extremely comfortable with Rolanda Adams Financial Services’s advice, experience and strategies and the returns on my investments. Rolanda Adams Financial Services is my "Breath of Fresh Air" at this stage of my life and she makes herself available 24/7 should you need to talk with her. Steve Hoad (Ground Engineer, Qantas)

In 1997 I left Energy Australia and decided to join Rolanda Adams Financial Services for the financial support and advice that I would need into the future. That decision has proved a very good one and I am still with Rolanda Adams Financial Services who have given me advice and friendship over those many years. The advice given has ensured that my investments have been protected and the major loses, of some, during the GFC was not felt by me unduly. Rolanda Adams Financial Services and the team are very easy to contact at any time and one is always received in a most professional manner. I would be most happy to recommend Rolanda Adams Financial Services to all who need financial services. Graham Fleeton (Manager, Property Insurance Group Energy Australia)

Rolanda Adams Financial Services has been my Adviser for the past 18 years. Through their wide industry experience and professional expertise they have ensured the sound development and ongoing management of my investments. Their advice has invariably been sound, timely and entirely tuned to meet my personal needs in retirement. they have a friendly, engaging manner and are always readily available to address any of my concerns. I have no hesitation in recommending Rolanda Adams Financial Services. Neil O'Keeffe (Chief Inspector (retired), Australian Customs Service)