National Australia Bank Business Survey for August

Business Confidence drops to 1

  • prior 4

Business Conditions also come in at 1

  • prior 3, revised from 2

In brief key points via NAB:

  • Both business confidence and conditions … well below long-run averages
  • outcome suggests that momentum in the business sector continues to weaken
  • prompting us to review our outlook for interest rates which will be released alongside tomorrow's updated set of forecasts
  • Weaker conditions
  • decline in forward orders (which are negative and well below average)
  • reported capex decline to around average
  • capacity utilisation rose in August, it has been volatile in recent months and is a little below the levels seen a year ago.
  • Despite the slowing in activity, and a pull-back in expansion plans, the employment index remains around average
  • The survey still suggests weak price pressures, which against a backdrop of slowing activity may well weaken further

Looking for a bright point - employment sub index up a little

The results will be a negative input for the AUD, and note in the 'highlights' bit from NAB above, be on the lookout for a revised RBA call tomorrow.

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Background here: