Australia: NAB Business Survey
Business Conditions Marginally Soften in April
Bottom line:
In April, there was a slight decrease in Australian business conditions, with a decline of 2 points to reach a positive value of 14. Despite this slight softening, the overall conditions remain high and significantly above the average levels seen in the long run. Various aspects of the survey showed a slight easing. Price pressures displayed a mixed trend during the month, but on average over the past three months, they have continued to normalize after reaching their highest points.
Key numbers:
Business conditions +14 (from +16)Business confidence 0 (from -1)Trading conditions +20 (from +24)Profitability +11 (from +13)Employment +11 (from +10)Forward orders +1 (from +3)Exports +1 (from +1)Capacity utilisation 85.1% (from 85.1%)
Details:Surveyed business conditions eased -2pts to +14 in April, but remained well above the long-run average (c.6pts). Business confidence edged higher to 0 (from -1).
Compositionally, key components of the survey eased marginally in the month but remained solid overall. Trading conditions (-4pts to +20) and profitability (-2pts to +11) both eased slightly, while employment rose a touch (+1pt to +11). Forward orders fell -2pts to +1, while capacity utilisation remained unchanged at 85.1%.
By industry, business conditions rose sharply in transport & utilities and wholesale trade, while declining sharply in recreation & personal services. Looking through the volatility, business conditions remain strong across the board in level terms.
Measures of price pressures were mixed in the month. Labour costs remained steady at +1.9%qoq, while purchase cost rose +40bp to +2.3%qoq. That said, overall final product prices eased 20bp to +1.1%qoq, with retail prices easing 30bp to +1.4%qoq.
Source: www.finlogix.com
Looking through the volatility, measures of price pressures continue to normalise
Source: Goldman Sachs Global Investment Research, NAB
This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.