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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUSTRALIA DATA
The May NAB business survey showed further deterioration in conditions and confidence. They fell one point to +6, lowest since January 2022, and 5 points to -3, the first negative since November 2023, respectively. Despite the survey showing slower business activity, price and cost measures picked up which NAB pointed out is consistent with the return of inflation to target being “gradual and uneven”. The RBA believes that supply and demand are not yet in balance and this survey is in line with that view.
Australia NAB business survey
Source: MNI - Market News/Refinitiv
- There has been no progress on the inflation side in 2024, which is likely to concern the RBA. On the cost side, labour costs rose 2.3% in the 3 months to May (Apr 1.5%) and purchase costs rose 1.9% (1.3%). Despite tough retail conditions, retail prices rose 1.6% in the 3 months to May (April 1.0%) and final product prices 1.1% (0.8%).
Australia NAB business survey price/cost components %
Source: MNI - Market News/Refinitiv
- Business conditions are now below the series’ long-run average with consumer-related sectors particularly soft. Components were mixed with trading and profitability both down 3 points but employment up 3 points and above the series average. Capacity utilisation remains elevated picking up to 83.3%.
- Forward-looking orders rose 1 point but were still negative and below average at -6. Inventories rose 2 points to 4.6, highest since July 2023, which may weigh on orders going forward.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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