The National Australia Bank’s latest Australian Markets Weekly notes that business conditions in Australia as measured by its monthly business survey have improved considerably over the past 6 to 8 months. This improvement has been driven primarily by the South Australian, Queensland and Western Australian economies. All three of these states were previously negatively impacted (to varying degrees) by the downturn in mining, the effects of which have now largely run their course.
As Chart 1 in the document shows, business conditions for South Australia have improved considerably since late 2016. By mid-2017, South Australian business conditions were on par with other mainland states, and at their highest level since 2010. This recovery combined with other macroeconomic data – for example see our previous Data Wraps here and here – points to a welcome improvement in South Australian economic conditions.
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