The National Australia Bank Business Survey

Business Confidence: 10

  • prior 6

Conditions: 16

  • prior 10, revised from 11
  • Highest for conditions since 2007

Very strong indeed for these

Summary table:

NAB comments:

  • Outcomes certainly pointing to an improvement in the domestic economy
  • But warn that a degree of caution is warranted, citing diverse and rapidly changing seasonal influences and the timing of the Chinese new year holiday into January
  • Also wary of utilization rates "still at or below long-term averages for most of the major industry groups" - may hold back investment

More:

  • on-going weakness in retail conditions ... raises concerns about the underlying strength of household consumption
  • NAB Economics still have concerns for the longer-term growth picture, as the contribution from LNG exports, temporarily higher commodity prices and the residential construction boom fade, keeping pressure on the labour market

Despite all the wariness from NAB they say they are revisoing their forecasts and RBA outlook "in light of the recent flow of data".

more to come