Australia NAB business confidence jumped to 9-month high in January
|The business confidence index rose by 2pts to +12 index points, its highest level since April 2017, beating the estimate of 10.00, according to National Australia Bank (NAB) business survey 2018. The business conditions index jumped 6pts to a strong +19 index points in January compared to an expected drop to 12 index points.
The rise in confidence, though a good news, should be read with caution as the survey was conducted before the current turbulence in international financial markets.
Key quotes (Alan Oster, NAB Group Chief Economist)
While forward orders have eased a little they remain above average and capacity utilization has been trending up which is a good sign for both future investment and employment.
The employment index remains consistent with a solid rate of job creation of approximately 20K per month.
RBA to consider a gradual removal of emergency policy stimulus, as long as there are signs of wages strengthening.
We still expect the first RBA hike to come in the second half of this year if unemployment falls further and wages show improvement, although the risk is that the RBA will move later as it has indicated that it is in no rush to lift rates.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.