Australia's business conditions improved marginally in May, while
confidence remained unchanged, the latest survey by National Australia
Bank, or NAB, showed Tuesday. The business conditions index rose to -4
in May from -6 in April. The business confidence index remained at -1.
The indexes, however, suggested that both business conditions and
confidence stayed at low levels. The survey report found that
business conditions improved in wholesale, manufacturing and
construction, but worsened in mining were capital spending was at record
low. NAB expects near-term demand to remain weak with forward orders,
capacity utilization and employment conditions staying well below their
average levels. Any confidence gained from falling dollar and May rate
cut by the Reserve Bank of Australia have been undermined by domestic
weakness, the report said.
Meanwhile, the bank has downwardly
revised its forecast for the Australian dollar as the currency continues
to tumble in the face of a resurgent US dollar. In the lender's survey
of business confidence and conditions for May, NAB said it forecast the
Australian dollar to fall below 93 US cents by the end of 2013. The
lender expected the currency to drop as low as 87 US cents by early
2014.
Source by Commodity Insights
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