In good news for the economy, business conditions stayed strong in October, even though the mood of the business community is showing it.
National Australia Bank’s index of business conditions – based on measures of trading conditions, profitability and employment – remained at a relatively high nine points in October.
That’s only a couple of points below
the highest levels seen since the global financial crisis in 2008, and well over the zero level where positive and negative responses to survey questions
are evenly balanced.
But NAB economists say business confidence has been stubbornly sluggish in the past six months, with the index dropping back to two index points in October,
from five in September, well below the long run average.