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: