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NAB Business Survey Shows Economic Resilience

AUSTRALIA DATA

The NAB business survey for August showed that activity in Australia while off its peaks remains resilient. Business conditions rose to 13 from an upwardly revised 11 and confidence, which has been volatile, rose to 2 from a downwardly revised 1, the highest since January. This data should reassure the RBA that it can achieve a soft landing as with rates steady at 4.1% business isn’t running too hot or collapsing and labour demand remains strong.

  • The Q3 average of business confidence is signalling that GDP growth may trough around the end of the year.
Australia NAB business confidence vs GDP y/y%

Source: MNI - Market News/ABS/Refinitiv

  • All the current conditions components were higher. Employment rose 3 points to 9.2, still above average and the highest since April, signalling that labour demand remains robust. Forward looking orders rose to +0.3 from -0.9 and while exports and exporters sales were lower they both remained above the historical average.
Australia NAB employment vs employment y/y%

Source: MNI - Market News/Refinitiv

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