WA leads business confidence

Business confidence in the mining sector has lifted to keep Western Australia at the forefront of industry sentiment around the nation, according to a recent survey of business conditions. National Australia Bank’s Business Conditions Index fell in April by eight index points to 12 points from March as conditions eased across the nation after a surge in the month prior. The domestic economy was still performing better than six months earlier. Conditions in retailing, manufacturing and transport remained the weakest, while services in mining-related sectors led the survey. Conditions remained significantly stronger in WA, while there was a rebound to an average performance in New South Wales. The still-strong business conditions index was driven by improving performance in the cyclicals – manufacturing, retail and wholesale, NAB said. However, the annual rate of wage inflation was up 4.75 per cent on the same time last year and this could cause concern.