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Business confidence on the rebound

Business confidence is back to pre-GFC levels according to NAB's recently released September 2010 Quarterly Business Survey and Forecasts.

"While profitability improved slightly and trading conditions were unchanged, employment declined (although remaining in positive territory)," notes the report.

Every industry sector except finance posted a pickup in business confidence, which is strongest in transport and business services. Conditions were poorest in retail (negative net balance), wholesale, property and construction. However, despite a heavy decline in conditions in both sectors, confidence rose strongly in property services and construction.

The results highlight a sharp decline in conditions in Western Australia, due to a decline in mining, while Victoria is the strongest of the major states, followed by South Australia.

Meanwhile, expectations for house price growth over the coming year were revised down from 2.6 per cent to 1.6 per cent.

"A downward revision to price expectations was also evident in the recently released NAB Residential Property Survey of the property sector," according to the report.

Source: Switzer news