Con­fi­dence strong

Port Douglas & Mossman Gazette - - BUSINESS -

THE NAB busi­ness sur­vey re­ported this week that both busi­ness con­di­tions and busi­ness con­fi­dence ended 2013 and be­gan 2014 at above av­er­age lev­els.

The pre­vi­ous oc­ca­sion both were above av­er­age was April 2011.

Aus­tralian bond fu­ture prices are weaker af­ter the rise in busi­ness con­fi­dence and con­di­tions fur­ther sig­nalled an end to the in­ter­est rate cut cy­cle.

In Jan­uary, the con­di­tions in­dex rose 1pt to +4 and busi­ness con­fi­dence rose 2pts to +8.

The con­di­tions in­dex av­er­aged 0, dat­ing back to 1989, while con­fi­dence av­er­aged + 5 over this pe­riod.

The Jan­uary sur­vey was in the field from Jan­uary 28 to Fe­bru­ary 3. (Re­li­a­bil­ity of up­dates at this time of year is not as great as usual with many on, or just re­turn- ing from, sum­mer hol­i­days.)

A trend im­prove­ment in busi­ness con­di­tions is ap­par­ent from Au­gust 2013, when the in­dex was at -7, with the econ­omy ben­e­fit­ting from an eas­ing of mon­e­tary con­di­tions. The RBA low­ered rates in May and Au­gust 2013, and the Aus­tralian dol­lar dipped be­low US90¢ in Au­gust, down from US103¢ in April.

Also, global con­di­tions and global sen­ti­ment showed some im­prove­ment dur­ing the third quar­ter of 2013.

By state, the con­di­tions in­dex was pos­i­tive in Jan­uary in each state with the ex­cep­tion of Queens­land, which is feel­ing the im­pact of drought and some cool­ing of con­di­tions in the min­ing sec­tor.

Con­di­tions in WA, which were +4 in the month, will come un­der pres

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