Australian business confidence and conditions both fell in September from August, snapping a remarkable rebound on both fronts so far in 2009, according to a monthly survey by National Australia Bank.
Business confidence fell four points to +14 in September from August, while business conditions dropped one point to +3 points, the survey said.
The survey data were collected in the last week of September, so the downturn in sentiment and conditions occurred ahead of the Reserve Bank of Australia's Oct. 6 interest rate hike. The pullback in confidence is modest and most analysts expect the survey will do little to deter the RBA from further near-term rate hikes.The employment index rose 10 points to -1 in September from August, according to the survey.
"Having seen a remarkable surge in confidence in the last six months, it was probably inevitable that some weakening was due," said Alan Oster, chief economist at NAB, in a statement.
"Certainly our view was and still is that the readings for confidence are somewhat 'unrealistic' - especially when compared to actual business conditions," Oster added.