9 Jun 2015
Australia's NAB business survey improves significantly in May
FXStreet (Bali) - Australia's NAB business survey came better-than-expected in May, with both business confidence and conditions showing an improved outlook of 7 vs 3 and 4 last, respectively.
NAB’s Monthly Business Survey – May 2015
"The recent Federal Budget and interest rate cut appears to have had a positive impact on business confidence – which moved up significantly in May - from +3 to +7 index points. This is the highest level of confidence since August 2014 and has helped to turn the trend more positive. Confidence was significantly higher in retail / wholesale (possibly associated with expectations from the Small Business Package) and finance, business and property services. Mining confidence, on the other hand, fell significantly (to -30 points)."
"The pick-up in confidence could also reflect improved business conditions. Business conditions rose from +4 to +7 points in May (and the highest read since October 2014), further cementing the upward trend seen over recent months. All components of the conditions index (trading, profitability and employment) improved in the month, although a meaningful recovery in employment remains absent – the index is still negative. Conditions vary greatly across industries and a number reported a deterioration – again the largest fall was in mining. Conditions remain most positive in service sectors. The ‘bellwether’ wholesale industry improved, but remains weak (transport was weak also). Encouragingly, leading indicators such as forward orders improved, as did capacity utilisation and capex spending."
NAB’s Monthly Business Survey – May 2015
"The recent Federal Budget and interest rate cut appears to have had a positive impact on business confidence – which moved up significantly in May - from +3 to +7 index points. This is the highest level of confidence since August 2014 and has helped to turn the trend more positive. Confidence was significantly higher in retail / wholesale (possibly associated with expectations from the Small Business Package) and finance, business and property services. Mining confidence, on the other hand, fell significantly (to -30 points)."
"The pick-up in confidence could also reflect improved business conditions. Business conditions rose from +4 to +7 points in May (and the highest read since October 2014), further cementing the upward trend seen over recent months. All components of the conditions index (trading, profitability and employment) improved in the month, although a meaningful recovery in employment remains absent – the index is still negative. Conditions vary greatly across industries and a number reported a deterioration – again the largest fall was in mining. Conditions remain most positive in service sectors. The ‘bellwether’ wholesale industry improved, but remains weak (transport was weak also). Encouragingly, leading indicators such as forward orders improved, as did capacity utilisation and capex spending."