Quarterly Agribusiness Survey – June 2014
The latest National Australia Bank (NAB) post-farmgate Agribusiness Survey reports that the sector remains overwhelmingly optimistic about business conditions over the next 12 months, despite the index falling in the June quarter.
- Post-farmgate agribusiness conditions continued to fall in the June quarter, entering negative territory for the first time in 15 months. While this fall is partly explained by seasonal conditions, it comes despite welcome autumn rainfall in much of the country, which combined with above average late autumn temperatures has given many producers a decent break coming into winter.
- While total post-farmgate agribusiness confidence has fallen to -13, many sub-sectors report increasing confidence for the next three months and expected conditions for the next 12 months have risen to +24.
- The export sales index has fallen since the March quarter but remains squarely in positive territory. Export expectations have moderated considerably, reflecting expected results not being matched by actual results in the previous 4 quarters.
- Survey respondents continue to be overwhelmingly optimistic in their medium-term outlook for post-farmgate business conditions. This, combined with expectations of a prolonged period of low interest rates, has fuelled somewhat lower but nonetheless strong capital expenditure intentions for the year to come.
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