New economic data has revealed that Australians believe business conditions have improved, which the Finance Brokers Association of Australia (FBAA) has said is a good sign for brokers.
According to NAB’s business survey for October, the business conditions index rose to a record high of 21.1 points in the month, the highest point since 1997.
While NAB’s business confidence index remained unchanged at 8 points, “marginally above the long run average”, ANZ/Roy Morgan’s consumer confidence rating increased by 2 per cent to 114.8 — its highest point in two months.
FBAA executive director Peter White said that he believes these figures are a promising sign for brokers.
He said: “These indicators show that there is confidence in the local economy across the board.
“That’s encouraging for mortgage brokers because it points to consumers feeling more optimistic about the outlook in this country.”
The NAB monthly business survey reported, however, that some economic indicators point to a potential “pull-back” in the business conditions index in the coming months. For example, there was a drop in households’ sentiments about their own finances.
But Mr White remains optimistic and believes that the figures could present brokers with an opportunity to capitalise on client positivity — with a caveat.
“As [householders’] confidence in the economy increases, they feel less pessimistic about their ability to make financial commitments such as taking on mortgages or refinancing existing loans, and that’s where brokers can play a prominent role.
“I urge brokers to make sure the loans they write are not unsuitable for borrowers and that they meet their financial circumstances.”
South Australia was the only state that didn’t experience growth in NAB’s business conditions index.