National Australia Bank's September Business Survey
The headline results:
Business conditions 14
- prior was 14, revised from 15
- Longer run average for this is 5, so still a super performance
Business confidence 7
- prior 5
Sub measures:
- Sales up one point to +19 (an historic high )
- Profitability +2 points to +17
- Capacity utilisation up to 81.9 percent
- Capex intentions up to +9
- Employment index -3 points to +7 (still a strong measure at 7)
NAB group chief economist Alan Oster comments:
- "The construction industry is currently leading the way with the highest business conditions, although most industries are following close behind
- Retail continues to be the main exception, with negative conditions continuing to raise doubts about the possibility of an imminent rebound in consumer spending - although tough competition and other margin pressures are likely underpinning the result as well."
- With the labour market poised to see further improvement going into 2018, the economy now seems better equipped to deal with the challenges it faces
- he said. If that pans out, the RBA could be ready to raise interest rates in the second half of 2018, said Oster.
Oster tips the RBA to hike rates in H2 of 2018
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National Australia Bank survey more than 400 firms
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AUD/USD ticking a little higher after the release. A small range for the session so far though.
