Australia NAB business confidence dropped from -1 to -4 in February. Business conditions dropped from 2 to 0. Looking at some details, trading conditions dropped from 5 to 4. Profitability conditions dropped from 1 to -5. Nevertheless, employment conditions ticked up from 1 to 2. Forward orders dropped sharply form -1 to -4. Stocks dropped from 0 to -6. Exports dropped from -1 to -2.
Alan Oster, NAB Group Chief Economist: “Both conditions and confidence fell in the month, but not by as much as we had feared. That said, both continue to track below average and with forward orders weakening its likely we could see further deterioration”.
“With leading indicators softer, it is unlikely we will see a material improvement in conditions in the near term. With conditions and confidence continuing to track below average – there are risks around future capex and employment growth.
