Australia Needs to Spur New Investment to Avoid Downturn

        0051 GMT [Dow Jones] Australian business confidence was steady in the third quarter compared with the second quarter, but the data hide a noticeable recent decline that reflects a softening of the economy, the National Australia Bank says. NAB's business confidence index registered +6 points in the quarter, the same as in the second quarter when firms were reacting to the government's budget which contained spending cuts and new taxes. "Momentum has turned, with confidence easing steadily over the quarter," it says. The data will worry the reserve bank which has held rates at record lows for well over a year to spark a recovery in non-mining investment to cushion the economy against the end of a mining boom. "It suggests a lack of urgency for firms to invest--much stronger non-mining investment will be needed to achieve trend growth in domestic demand," NAB adds. (james.glynn@wsj.com; Twitter @JamesGlynnWSJ)
        (END) Dow Jones Newswires
        October 22, 2014 20:51 ET (00:51 GMT)