Australia NAB Business Confidence rose to -20 in May, up from April’s -45. Business Conditions rose to -24, up from 34. Looking at some details, trading conditions rose to -14, up from -31. Profitability rose to -19, up form -35. Employment rose just slightly to -31, up from -34.
According to Alan Oster, NAB Group Chief Economist said negative conditions indicates that “activity was still extremely weak in May.” Also, “forward orders suggest that in the short-term activity is likely to remain weak in the business sector and combined with low capacity utilisation and still very weak confidence points to ongoing restraint in Capex spending”. Recovery in confidence will likely be a “key factor” in how businesses recovery from the largest downturn since 1930s.
