Australia National Australia Bank business confidence & conditions for May

National Australia Bank business confidence +7. This is the highest in 9 months

  • prior was +3

Conditions +7. Highest since October of 2014

  • prior was +4

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Good jump for both indicators

More:

  • The Capex index is up 4 to +10, above its long-term average
  • Capacity utilization 80.8% (was 80.1% in April)

From NAB comments:

  • Improved conditions not uniform across all business sectors
  • A "meaningful recovery in employment remains distant"
  • "The big picture is still one where the domestic economy is struggling to offset the impact of sharply lower mining investment - as again highlighted in the national accounts" of Q1
  • "there has been some improvement in recent data"
  • Capex expectations in the non-mining sector have weakened, businesses remain reluctant to employ and consumers remain cautious
  • "With future domestic demand still weak, unemployment is expected to rise a touch to around 6.4 per cent by the end of 2015 and remain relatively high for some time"
  • NAB says the RBA has finished its current easing cycle
  • Says mild improvement in some forward-looking indicators in the May confidence survey pointed to a "modest pick-up in demand in the near term"