SYDNEY - Australian business confidence tumbled in May for a third straight month, led by a slide in sentiment among mining companies after the Government announced plans to introduce a 40 per cent tax on resources profits.
The confidence index dropped 8 points from April to 5, below its long-run
average of 7 points, according to a National Australia Bank survey of more than 500 companies between May 24 and May 31.
The survey adds to evidence suggesting business sentiment is being buffeted by global financial market turmoil triggered by Europe's debt crisis, the central bank's decision to boost borrowing costs last month for the sixth time since October, and the mining profits plan.
Australia's economic growth slowed in the three months to March 31 to 0.5 per cent from 1.1 per cent in the previous quarter, a report showed last week. National vacancies advertised in newspapers fell 6.5 per cent in May, a report by ANZ Bank showed on Monday.
- BLOOMBERG
