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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 NAB measure of business conditions fell for the third consecutive month in December to its lowest since January 2022 but still well above the series average. However, business confidence improved 3 points to -0.8, which is still very low compared to the rest of 2022 and below average. Confidence and orders are signalling a further moderation in the months ahead.
- The NAB price components continue to show price pressures on both the input and output sides, but they are easing and pointing to a tentative peak in Q4 2022. Labour cost growth slowed to 2% in December from 2.8% the previous month and purchase costs to 2.5% from 3.9%. On the output side final product inflation moderated to 1.5% from 2% and retail to 2.3% from 2.8%.
- The survey is pointing to slower activity but at solid levels and continued tight capacity but with softening labour demand and price pressures, welcome developments for the RBA. NAB notes that the fading of the post-Covid demand bounce and higher rates are impacting business.
- The drop in business conditions was driven by all three of its components with trading conditions down 10 points, profitability -8 points and employment -5 points (lowest since January 2022). The move was broad-based across sectors and states.
- See press release here.
NAB business conditions vs business confidence
Source: MNI - Market News/Refinitiv
NAB survey labour market components
Source: MNI - Market News/Refinitiv
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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