Back
11 Mar 2014
Australian business conditions deteriorate sharply
FXStreet (Barcelona) - Business confidence in Australia eased from 9 to 7 in February, while business conditions dropped sharply from the near 3 year highs, posting a 5 points decline from 5 to 0 in February.
According to Alan Oster, Chief Economist at NAB: "Recent recovery short lived? Business conditions back-pedalled sharply in February reversing around half post election gains. Confidence softened but still remains marginally above trend."
Oster added: "Sales and employment fell markedly during the month, with the latter pointing to very weak labour market conditions (nearly all post election gains reversed) - and a jobless recovery. Manufacturing conditions deteriorated sharply, as did “bellwether” wholesaling conditions."
"Near-term outlook weaker with forward indicators softening. Inflation pressures well contained due to limited upstream pressures. Economic growth forecasts unchanged. Final RBA cut to occur in late 2014, with unemployment still expected to rise to 6½% by late 2014 and stay “higher for longer”.
According to Alan Oster, Chief Economist at NAB: "Recent recovery short lived? Business conditions back-pedalled sharply in February reversing around half post election gains. Confidence softened but still remains marginally above trend."
Oster added: "Sales and employment fell markedly during the month, with the latter pointing to very weak labour market conditions (nearly all post election gains reversed) - and a jobless recovery. Manufacturing conditions deteriorated sharply, as did “bellwether” wholesaling conditions."
"Near-term outlook weaker with forward indicators softening. Inflation pressures well contained due to limited upstream pressures. Economic growth forecasts unchanged. Final RBA cut to occur in late 2014, with unemployment still expected to rise to 6½% by late 2014 and stay “higher for longer”.