Businesses become more confident in the September quarter. This fundamentally appears to be driven by political factors – albeit the lower Australian dollar and rates, together with stronger asset markets would have helped. But these factors have not yet boosted business conditions, which tracked lower to the weakest level in four years. Forward indicators remain subdued. Capex expectations also weak, especially in mining. Prices growth implies soft underlying inflation in Q3.
Business confidence lifted to its highest level in two years, despite business conditions slipping into even deeper negative territory in the September quarter.