Australia: Business conditions and confidence eased in October - Westpac

Andrew Hanlan, Research Analyst at Westpac, notes that Australia’s business conditions moderated by 2pts to +14 to be off the highs of the second half of 2017 (+16) and the first half of 2018 (+18).

Key Quotes

“The index is still at elevated levels.”

“Business confidence slipped by 2pts to +4, a reading a little below average.”

“To date, the overall economy is performing solidly against the backdrop of firm world growth, elevated commodity prices, strong population growth, brisk government spending, an uptrend in business investment and a materially lower Australian dollar.”

“The survey suggests that near-term this latest reading on employment conditions is consistent with average monthly job gains of 20,000, a pace which would see the unemployment rate decline (absent a rise in participation).”