Business confidence dips in February

Aussie companies have become increasingly concerned with the shaky state of the economy, new figures have suggested.

National Australia Bank's (NAB's) monthly business survey found that confidence declined from +4 points in January to just +1 point in February.

It is thought that the ongoing turmoil in the eurozone has caused much of the downturn, while the Reserve Bank of Australia's decision not to lower interest rates during the month may also have impacted business banking customers' optimism.

The financial crisis in Europe does appear to be having a major bearing on Aussie firms, as the Bank of International Settlements recently revealed that banks across the continent withdrew $7.56 billion worth of loans from Australia in the second half of 2011.

With many Aussie enterprises relying on financing from the country's banks in order to expand, it is little wonder that confidence has fallen.

According to the Australian Associated Press, the NAB also stated that traders down under are being hindered by the high value of the dollar when attempting to compete business overseas.

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