National Australia Bank Business survey for April

Business Conditions 14

  • prior 12, revised from 14
  • At 14 it's the highest since January of 2008
  • Long run average is 5

'Trading' is down 4 points m/m, to 17

  • Profitability is unchanged at 14
  • Employment is up 2 points on the month to 8
  • Capacity utilisation is at 81.3% (March was 81.8)

Business Confidence jumps to 13

  • prior 6

NAB comments:

  • Business conditions a bit stronger than expected partly because the level of conditions in Queensland did not deteriorate as much as first thought in the wake of Cyclone Debbie.
  • Points to an ongoing improvement in employment conditions, which is a trend that is critical to the likely path of the Reserve Bank of Australia's cash rate
  • We remain confident in our outlook for economic growth to accelerate in the second half of 2017
  • Longer-term economic outlook is somewhat less certain ... as important growth drivers, such as LNG exports, commodity prices and housing construction, begin to fade
  • RBA emphasis on financial stability concerns are expected to keep them on hold for the foreseeable future

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Business confidence and conditions are strong. If that is an indication for non-mining investment it augers well. Still challenges for the domestic economy from low concusmer confidence though.

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The National Australia Bank Business Survey polls more than 400 firms