National Australia Bank survey of business for July 2022.
Business conditions 20
- prior 13
Business confidence 7
- prior 1
Both measures significantly improved from June. The 'conditions' measure is more objective than the sentiment-based 'confidence'.
- strength in conditions remained broad-based across states and industries
- a notable pickup in the construction sector
- survey suggests that despite global and domestic economic headwinds, demand has remained strong
- inflationary pressure continues to build suggesting that inflation is yet to peak
On inflationary pressures, check out the costs and prices rows below in the pic:
- purchase costs climbed to a record high of 5.4%
- labour costs, retail prices also notably higher
Helping to drive inflationary pressure is that higher capacity utilization also.
Wages up, prices up, capacity tight ... the implications for the RBA are for higher rates. Next meeting is September 6, +50bp looks to be a lock, again.