14 Oct 2009

Australian business confidence slips

9:48 am on 14 October 2009

A key measure of Australian business confidence slipped from near six-year highs in September as manufacturing confidence took a hit on a rising Australian dollar.

A monthly survey of more than 400 companies by the National Australia Bank shows the measure of business confidence fell 4 points to 14 points in September.

Despite the fall, it's the fourth consecutive month the reading's been positive, reflecting some of the economic rebound that prompted the Reserve Bank to raise interest rates to 3.25% last week.

The measure of business conditions eased 1 point to 3 points in September, reflecting falls in sales and profitability.

However, the index for employment rose strongly, reflecting government data last week which showed more than 40,000 jobs were created in September, against forecasts for a fall of 10,000.