Australia business confidence rebounds, activity lags: survey
- We condemn the flogging of Dalit men in Gujarat, says Rajnath Singh
- India cannot suppress voice of Kashmiris, should hold plebiscite: Nawaz Sharif
- Hockey legend Mohammed Shahid passes away
- Ambiguity on Navjot Singh Sidhu's status in BJP as no official word on resignation from party
- 7th Pay Commission: Govt to examine pay parity between IAS, non-IAS officers
Australian business confidence rebounded sharply in December thanks to lower interest rates and better news offshore, though activity lagged due to weakness in the retail, manufacturing and construction sectors, a survey showed on Tuesday.
The monthly survey of around 500 firms by National Australia Bank found a broad-based recovery in confidence after a slump in November, perhaps linked to the Reserve Bank of Australia's (RBA) cut in rates early in the month.
The survey's main measure of business confidence climbed to 3 in December, more than recouping November's decline to -9 and the highest reading in five months. The index of business conditions improved to -4 in December, from -6 the previous month.
"Firms appear to have taken relief from a last minute agreement to delay the US 'fiscal cliff', while signs of strengthening in the Chinese economy have also helped," said NAB chief economist Alan Oster. "This, combined with another RBA rate cut in December, is likely to have helped confidence."
The survey was conducted between Jan 9 and Jan 15.
The survey's measure of business sales ticked down in the month, but those for profitability, employment and forward orders improved.
Conditions in transport & utilities and recreation & personal services were relatively healthy, but the wholesaling sector took a sharp turn for the worse.
Price pressures remained very subdued in December, which is one reason Oster expects the RBA will cut rates further this year.
- The endeavour for a common civil law must be to end discrimination, and not stamp majority might
- A host of powerful open and programmable capabilities is set to create the ‘WhatsApp moment’ for Indian banking
- Local newspapers are often the only source of news during curfew and the record of state violence
- Navjot Sidhu’s revolt has complicated the Punjab pre-poll scene
- There is an urgent need for India to reclaim 'national interest' from its national media
- India's institutionalised monetary policy framework has to be taken to its logical conclusion