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
Hot Issues
- GST fraudsters to face ‘full force of the law’: ATO
- Social media scams dominate losses in 2024
- Managing your business’s tax debts
- Warning on ATO data matching “lifestyle” assets and your business
- ATO issues alert on guarantee arrangements and Division 7A
- E-Commerce Laws You Must Know To Run An Online Business
- Resources and Tools to help our Clients build their future
- Most Powerful Economies in Europe | 1960-2024
- ATO reveals small business hit list to combat tax debt
- What are the FBT implications of Employee Christmas Parties and Gifts?
- Assess a business before you buy it
- Christmas Parties and Taxi Fare/Rideshare – FBT implications.
- Practitioners cautioned on ATO’s top target areas for GST
- ATO to target growing businesses in latest compliance blitz
- Our SG compliance results are here
- Top 20 Most Watched Christmas Movies ever - pre covid
- A Unique Advent Calendar
- Businesses ghosting the ATO targeted in debt collection blitz
- Claiming the tax-free threshold: getting it right
- Aussies tired of ‘dodgy tax criminals’, warns ATO
- Protect your small business by following these essential steps.
- Super guarantee a focus area for ATO business debt collection
- Controversial ‘Airbnb tax’ set to become law
- Withholding for foreign residents: an ATO focus area
- 1 in 3 crypto owners confused about tax, study reveals
- 20 Years of Silicon Valley Trends: 2004 - 2024 Insights
- ATO reveals common rental property errors from data-matching program
- New SMSF expense rules: what you need to know
- Government releases details on luxury car tax changes
- Treasurer unveils design details for payday super
- 6 steps to create a mentally healthy and vibrant workplace