The property market proved to be one of the country’s economic stand-outs last month, according to the NAB Monthly Business Survey, which found business confidence ‘lifted sharply in finance/ business/ property, possibly bolstered by an improved outlook for the property market’.
Overall, business confidence strengthened somewhat, with the index rising to its highest point since May, 2011 – a fact which the major lender is largely attributing to the August rate cut, lower AUD and the expectation of a change in government.
However, while business conditions edged marginally higher last month, they fundamentally remained ‘unchanged at soggy levels’. Retail, mining, manufacturing, construction and wholesale, while recreation and personal services was the only sector to report positive conditions.
Yet despite the subdued figures, businesses became much more optimistic in August. All industries became more confident in the month, with ‘particularly solid’ improvements in mining, construction and finance/ business/ property. NAB says the latter two industries may also be anticipating a revival in activity on the back of a strengthening property market.