Business confidence has held up quite well and is remarkably steady given the context of major uncertainties both at home and abroad. That said, the level of confidence has not picked up to reflect the overall strength in business conditions seen over the past year or more.
The December NAB Monthly Business Survey indicated a reprieve from the steady moderation in business conditions seen late last year. That outcome points to a stronger outlook for the economy, but we remain cautious given other aspects of the Survey that suggest the rebound might prove to be temporary. Weakness in retail conditions is particularly concerning, while we … (full story)