Australia's Sep Business Confidence Recovers Slightly

Australia's Sep Business Confidence Recovers Slightly

Australia's business confidence recovered moderately in September but remained downbeat, monthly business survey data from National Australia Bank showed Tuesday. Meanwhile, business conditions disappointed, with struggling retail and wholesale falling significantly. The business confidence index came in at zero, up from -3 in August, while the business conditions index fell to -3 from zero last month.

NAB said announcements of further policy stimulus from the US Federal Reserve and the European Central Bank helped to lift business confidence.

It expects one more rate cut from Reserve Bank of Australia in November, provided core inflation remains subdued with the possibility of another in early 2013. NAB says the central bank will run accommodative policy in 2013 to help offset changing nature of mining boom.