Australia: Business conditions up, confidence slips in March - Westpac

Andrew Hanlan, analyst at Westpac, notes that the Australia’s business confidence slipped further in March, sliding to a 6 year low but conditions moved a little higher (although that still leaves the sharp downtrend in place).

Key Quotes

“The confidence index fell by 2pts to 0. This is a well below average reading and is the softest result since July 2013. Confidence averaged +9 over the first half of 2018.”

“The conditions index rose by 3pts to +7, which still leaves the sharp downtrend in place. By comparison, conditions averaged +18 over the first half of 2018.”

“The slowing of the Australian economy during the second half of 2018, which has extended into 2019, is centred on housing and the consumer, with spill-over effects to other sectors.”

“A key question, how will this loss of confidence impact business spending decisions? On this, the March NAB business survey is mixed.”