Modest dip in business conditions
AUSTRALIAN business conditions eased modestly in July but remain at levels consistent with solid activity, a survey by National Australia Bank shows.
NAB’s index of business conditions dipped two points to 12 in July, but remained well above the long-run average of six points.
The often-volatile measure of business confidence rose one point to seven, while the measure of profitability fell five points in July to 10 points, unwinding all the gains of the previous month.
In a promising development, the survey’s employment index bounced five points to 10.
“The employment index – based on historical patterns – is consistent with jobs growth of around 23,000 per month, which should see the unemployment rate continue to edge lower over the rest of 2018,” NAB group chief economist Alan Oster said.
Official data for employment in July is due tomorrow, with economists forecasting an increase of around 15,000.
NAB’s employment index was highest in the mining industry, followed by finance, business and property services as well as construction.
Overall business conditions improved markedly in the construction sector, followed by personal and recreation services, and wholesale. Conditions fell in manufacturing, retail, finance, business and property, and transport and utilities.