By: Staff Reporter
Business confidence has fallen for the third consecutive month, forcing NAB to revise its growth forecasts.
According to NAB’s monthly business survey, consumer weakness, lower equity and commodity prices, weaker forecasts for public final demand and soft survey results have NAB to revise its GDP growth back down to 2.75 per cent from 3.5 per cent.
NAB chief economist Alan Oster said business confidence now sits well below its long term average.
“Confidence fell sharply in mining, presumably partly in response to the announcement of the resource super profits tax. The tourism-exposed recreation and personal services and transport sectors declined further: although the Australian dollar declined, financial market instability may have been a concern,” Mr Oster said.
As a result of the findings, Mr Oster is inclined to believe the RBA will keep rates on hold when they meet again in July.
