On Tuesday 10 September 2019 at 0130GMT we'll get data for the National Australia Bank Business Survey for August
July results:
- Business Confidence 4
- Business Conditions 2
(or, for more, here is the July data and comments post: Australia July Business Confidence 4 (vs. prior 2) & Business Conditions 2 (prior 3). The employment subindex was awful.)
Confidence is a focus for the market after it collapsed in 2018. Deterioration in confidence leads to lower investment from firms and reduced hiring intentions. It is, thus, a negative input for the currency.
A couple of in brief previews via:
ANZ:
- Business conditions could see some improvement in August; however, we are not expecting a material, sustained recovery in the near-term.
- Ai Group's Services Performance Index bounced back during the month and manufacturing moved further into expansionary territory. Construction also improved, but this was off a six-year low.
TD:
- The softening in the employment subcomponent from -5pts to 0 drove business conditions lower by 2 pts with retail and manufacturing under pressure. Tax cuts may help to boost confidence but we think global growth/trade concerns are more likely to have dominated.
- The main components of the July survey that registered drops were trading conditions -1pt, employment -5pts, forward orders -3pts, and capacity utilisation from 82.1% to 80.9%.
