8 Jul 2014
Australia: NAB business survey shows marked improvement
FXStreet (Bali) - Both business confidence and business conditions presented encouraging outcomes for the month of June, with the former printing 8 vs 7 last month, while the latter saw the index jump to 2 vs -1.
Alan Oster, Chief Economist at NAB, notes:
"Business confidence showing no ill effects from the government’s ‘tough budget’, rather improving in line with better business conditions (reflecting sales and profits) – albeit conditions remain sub trend."
"Most industries showed better outcomes but heavy lifting done by surge in construction. Employment and capacity utilisation, however, weakened significantly."
"The ‘bellwether’ sectors (wholesale, transport) are giving mixed signals, while forward orders suggest little fundamental change in activity. Inflation pressures remain muted. NAB forecasts unchanged with unemployment to reach 61⁄4% by late 2014. Rates still expected to be on hold till late 2015."
Alan Oster, Chief Economist at NAB, notes:
"Business confidence showing no ill effects from the government’s ‘tough budget’, rather improving in line with better business conditions (reflecting sales and profits) – albeit conditions remain sub trend."
"Most industries showed better outcomes but heavy lifting done by surge in construction. Employment and capacity utilisation, however, weakened significantly."
"The ‘bellwether’ sectors (wholesale, transport) are giving mixed signals, while forward orders suggest little fundamental change in activity. Inflation pressures remain muted. NAB forecasts unchanged with unemployment to reach 61⁄4% by late 2014. Rates still expected to be on hold till late 2015."