Alan Oster Conditions Quotations

While the Australian economy continues to report sub-trend growth, the December results reinforce the point that it is still performing reasonably well. Conditions improved in December, driven by stronger-than-expected trading and profitability.

The story is one of continuing boom conditions in mining and very strong nonresidential construction activity. The Reserve Bank is still very much on hold, watching both the inflation outlook and domestic demand.

Confidence has been getting weaker for some months and trading conditions have weakened a bit in the latest survey. They could weaken more in the short term, but when you look at the medium term, companies are still quite optimistic.