According to the ABC, business confidence has held up, even as conditions worsened to their worst level in a year-and-a-half, with NAB’s chief economist Alan Oster warning that business leaders have little basis for such optimism.
“We are becoming increasingly concerned about the underlying momentum in the economy as evidence mounts that the non-mining economy is losing steam,” he noted in the report.
“The downward trend in business conditions and signs of weakness in the third quarter National Accounts, beyond one-off influences such as poor weather, lend further support to this view.”
“For now though, we expect to see a fair degree of ‘bounce-back’ next quarter, before the economy resumes its relatively subdued growth track, characterised by muted domestic demand,” said Oster to the ABC.
Oster noted that the employment figures were a particular worry.