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AUSTRALIA DATA: Private Sector Continues Struggling, Inflation Not Contained Yet

AUSTRALIA DATA

The headline components of the August NAB business survey deteriorated with confidence down to -3.9 from +0.7 and conditions to +3.3 from +6.0, the lowest since January 2022 and below the historical average. Q2 GDP showed that the private sector is currently struggling and these results suggest that continued in Q3. However, cost indicators remain high but some price rises are easing, monitoring still needed.

  • The drop in business conditions was driven by all three components, trading, profitability and employment which fell to 1.1 from 6.8 but still above June. They are all below the series average. Forward-looking orders were weak but steady at -4, while exports improved slightly to -0.7 from -3.0.

Australia GDP y/y% vs NAB business conditions

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The headline components of the August NAB business survey deteriorated with confidence down to -3.9 from +0.7 and conditions to +3.3 from +6.0, the lowest since January 2022 and below the historical average. Q2 GDP showed that the private sector is currently struggling and these results suggest that continued in Q3. However, cost indicators remain high but some price rises are easing, monitoring still needed.

  • The drop in business conditions was driven by all three components, trading, profitability and employment which fell to 1.1 from 6.8 but still above June. They are all below the series average. Forward-looking orders were weak but steady at -4, while exports improved slightly to -0.7 from -3.0.

Australia GDP y/y% vs NAB business conditions

Keep reading...Show less