Business confidence takes a slide after rate rise
(11 May 2010 – Australia) Alan Oster, National Australia Bank’s chief economist has said that the Reserve Bank of Australia’s policy has started to cool down the Australian economy, as business confidence and job advertisements slide in April.
The bank’s monthly measure of business confidence plummeted from 16 points to 13.
There has been a very large deterioration in sales and in terms of confidence, again, it's in the sectors that are interest sensitive, Mr Oster said.
It now looks as if the increases in rates have started to slow the retail sector and whilst things are fine, business is not quite as optimistic as it was before, Mr Oster noted.
Australia and New Zealand Banking Group’s job ads series also indicated the flow on effect from the RBA’s rates decisions showing a 1.2 percent fall in vacancies during the month.
The Advantage Job Index figures for April also show a 1.7 percent drop, although spokesman Bob Olivier says some sectors did worse than others.
Those sectors hardest hit were transport, trades and services, administration roles for the first time in about 9 months, building and construction - an important sector for us - and sales and marketing, particularly retail which is affected by the interest rate hikes, Mr Oliver noted.
There has been a very large deterioration in sales and in terms of confidence, again, it's in the sectors that are interest sensitive, Mr Oster said.
It now looks as if the increases in rates have started to slow the retail sector and whilst things are fine, business is not quite as optimistic as it was before, Mr Oster noted.
Australia and New Zealand Banking Group’s job ads series also indicated the flow on effect from the RBA’s rates decisions showing a 1.2 percent fall in vacancies during the month.
The Advantage Job Index figures for April also show a 1.7 percent drop, although spokesman Bob Olivier says some sectors did worse than others.
Those sectors hardest hit were transport, trades and services, administration roles for the first time in about 9 months, building and construction - an important sector for us - and sales and marketing, particularly retail which is affected by the interest rate hikes, Mr Oliver noted.
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