Australian Business Confidence advanced the most in five months according to a report from the National Australia Bank. The details of the report look far less encouraging than the headline figure, however, as most industries saw confidence trending lower. The mining industry was an exception, where confidence rose as the effects of last year’s $2 trillion in global fiscal stimulus continued to underpin demand. Most disturbingly, a gauge of current business conditions dropped to the lowest level since September 2009 as sales fell the most in over a decade while profitability and forward orders suffered the largest monthly declines in15 months. On balance, the outcome paints a sobering picture, adding to increasing concerns about the resilience of the Australian economy particularly as China (the largest export market for Australian mining firms) clamps down on lending to slow growth and prevent the buoyant economy from overheating.
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