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    NAB Business Confidence

    National Australia Bank Limited
    Level 34, 500 Bourke Street
    Melbourne,Victoria 3000

    Business confidence is a measure of respondents expectations of business conditions in their industry for the upcoming period. Business conditions is a simple average of trading, profitability and employment indices, reported by respondents for their company. The trading, profitability and other indices are calculated by taking the difference between the percentage of respondents nominating good or very good, or a rise and those nominating poor or very poor, or a fall. Confidence indicator is a measure of the mood of consumers or businesses. It is usually based on a survey during which respondents rate their opinion on different issues concerning current and future conditions. There are many kinds of confidence indicators as institutions measuring them use different questions, sizes of samples or frequency of publications. Consumers opinions are typically expressed with answers like: better, same, worse or positive, negative and unchanged. Results of such surveys are calculated by subtracting the negative replies from the positive ones. Business confidence indicator is closely linked to corporate spending and correlated with employment, consumption and investment. Therefore itis carefully watched as an indication of possible changes in the overall economic growth.