November 12, 2024 00:59 GMT
AUSTRALIA DATA: Tentative Signs Economy Stabilising, Price Pressures Moderate
AUSTRALIA DATA
NAB October business confidence rose to +5 from -2, the highest since January 2023. Conditions were stable at +7, slightly above the series average, signalling that the economy continues to grow. Unchanged RBA rates for a year appears to be helping sentiment stabilise with Westpac’s latest consumer confidence reading also rising, while NAB business prices and costs moderated further with some measures now below historical averages.
Australia NAB business survey
Source: MNI - Market News/Refintiv
- Price/cost increases over the 3-months to October continued to moderate with final product prices rising 0.5% down from 0.6%, lowest since February 2021, and purchase costs 0.9% after 1.3%, below average. Labour costs rose 1.4% after 1.9% (revised from 1.7%), still above average. Despite soft discretionary spending retail price rises remain robust at 1.1% 3m/3m up from 0.6%.
Australia NAB business price/cost measures 3m/3m %
Source: MNI - Market News/Refinitiv
- Trading, profitability and employment make up business conditions but were mixed. Trading rose 1 point to 13, profitability was stable at +5, while employment fell 2 points to +3, which is around the historical average. Capex eased 1 point to +8.
- In terms of the outlook, forward orders remain negative but improved 2 points to -3, the highest since March. Inventories continued trending higher up 4 points in October to +9 after a recent low of +2 in June. The key will be whether stock building is because of stronger demand or if it is involuntary.
- Exports and exporters’ sales rose to zero.
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