Australia data - the National Australia Bank business confidence and business conditions survey for September.

NAB Business confidence: 5

  • prior 1

Business conditions: 9

  • prior 9, revised from 11

This is a good result today, a positive for the Australian economy

  • Index of sales down 4, but its +15 reading is well above long-run average
  • Profitability strong at +8, but down 2 points from last month
  • Most industries report improved conditions ... mining and manufacturing negative though
  • Positive signs for employment, too. The hiring outlook for hiring up 5 points on the month to +4, and a 4 year high.


Comments from NAB:

  • " ... the business survey suggest a good degree of resilience
  • What appears to be a building non-mining sector recovery ... Consistently above-average outcomes since March suggest that the improved momentum in the non-mining economy is not merely an aberration, but has become much more ingrained
  • Particularly apparent in industries thought to be highly responsive to currency changes in the near-term, including personal and business services
  • Trend continues to show improvement, which provides some optimism on the outlook for non-mining business investment and the labour market
  • employment is finally improving, turning positive and increasing to its highest level since mid-2011"

NAB on the Reserve Bank of Australia outlook:

  • we find it difficult to mount a case for further policy easing on purely domestic grounds and view market pricing for another 25bp cut over the coming 6 months as overly pessimistic.


more to come