(13 February 2013 – Australia) Business confidence remained positive for January, mostly hanging on to the gains made in December.A new survey showed business confidence fell just one point in January, resulting in an index reading of plus three.
The outcome was encouraging after the strong December surge in business confidence, according to the survey.
‘That recovery mainly reflects external factors, including the rally in global equity markets and generally better activity in China, as well as recent RBA cuts.’
‘However confidence remains below long-run average levels.’
Business conditions also improved in January, up three index points to minus two.
The source said conditions for the interest rate sensitive areas of the economy improved but mining took a heavy fall.
‘As such it is hard to estimate the impact of the recent flooding in Queensland and NSW.’
‘Early reports indicate that mining flood damage has been largely confined to the rail network supplying Gladstone, rather than the mines and ports, suggesting interruptions will only be temporary.’