Friday, April 17, 2009

Can we have confidence in the Business Confidence survey?

Earlier this week the NAB released the results of its latest business confidence survey. According to the survey, confidence rose for the second month in a row. However, it is still at very low levels.

Recently, the integrity of the survey was called into question for two reasons:
1. It does not publish a margin of error or say how it is calculated.
2. It is not clear what Business Confidence actually measures.

It seems to me that this is another example of misleading economic information. This is a real problem given we live in an information age. Especially as it seems information like this, more than ever, seems to be driving the economy.

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