There are some strong numbers on the Australian economy out today — job ad data and a stellar retail sales number — but nervous business are still wary and fragile despite cheap finance and low inflation.
The Australian Chamber of Commerce and Industry’s (ACCI) survey of General Business Conditions for the September quarter recorded its weakest result since the global financial crisis.
Burchell Wilson, ACCI Chief Economist, says there’s little evidence to suggest activity in the non-mining sectors of the economy will lift sufficiently to sustain the overall pace of growth.
“The economy faces an uncertain transition phase after an extended period of narrowly based growth, at the moment it is clearly still struggling to fire on all cylinders,” Burchell says.
The chamber’s index, at 42.8, has drifted around the same level for the past five quarters.
Sales Revenue continued to fall and have declined for six consecutive quarters.
However, despite poor actual sales, businesses still expect this indicator to improve in the December quarter.