Business confidence at seven-year high
Businesses remain unperturbed by the impact of interest rates, if the latest business confidence survey is any guide, with confidence surging to its highest level in seven years.
The sentiment reading enhances the prospect of strong business spending in the coming months and is likely to further reduce pressure on the unemployment rate.
According to the NAB index, business confidence in November rose 3 points to an index reading of +19, its highest since May 2002. The gains were led by the retail, mining and transport sectors, with construction and wholesale sectors the laggards.
Researchers labelled the data a “remarkable outcome”, although cautioned that it may lead to further upward pressure on interest rates.
