Business confidence at seven-year high

Business sentiment surged to a seven-year high during the September quarter, well off lows reached earlier in the year as businesses become more bullish about the economic prospects. Current business trading conditions also improved, albeit moderately.

The NAB survey of business confidence grew by 20 points to +16 points during the September quarter - a level last seen in early-2002.

”Business confidence in the third quarter jumped sharply,” NAB group chief economist Alan Oster said. ”New data in this survey point to a significant jump in both near and long term business expectations - with longer term expectations, in particular, returning to around long run average levels.”

”But in marked contrast, investment intentions remain very subdued consistent with little real increase in capital spending over the next year.”

Anticipated capital expenditure over the next 12 months was at eight points in the September quarter, still positive but not quite going with the trend of the survey.

Posted Thursday 5th of November 2009, 4:26 PM