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Business confidence fell dramatically in October, according to National Australia Bank’s Monthly Business Survey.
Alan Oster, chief economist at NAB, said businesses have reassessed their expectations about future activity in the changed political environment, given the continued weakness in actual business conditions.
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The October result showed recent gains had been lost, but confidence still remains elevated relative to recent history.
“Overall confidence remains relatively higher than the well below-average levels over the previous three years,” he said.
Mr Oster credited the current interest rate environment as having a positive influence on sentiment.
“Despite the reversal of the previous gain in confidence, low interest rates and an improving asset market may still be helping,” he said.
The survey reveals transport and utilities was the only sector to report improved confidence in October, while confidence remained unchanged in the finance/business/property sector.
All other sectors recorded a drop in business confidence.
