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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
Actual and expected business conditions eased further in Q2 to 9.4 and 14.3 respectively but are still above average. Actual confidence deteriorated to -6.7 but expected confidence improved to -3.3 from -4.1, both recorded the third straight negative. The share of firms expecting wage pressures to increase over the next 6 months rose to 83% from 74%. The survey is signalling slowing activity but that labour/wage pressures continue.
- The labour market indicators continued to point to strong conditions with the share saying labour was a constraint staying over 80%. Expected employment eased to 16.3 from 21 but remained well above the series average of 4.7. Expected labour costs rose to 1.9 from 1.0, the highest since the series began in 1989, likely driven by the 5.75% minimum wage rise announcement, as it also rose in Q2 2022. NAB reports that wages and margin pressures are the biggest concerns.
- Other expected cost/price indicators also rose with overheads at 1.1 from 0.8 and final product prices at 1.0 from 0.8. Retail price growth increased to 1.1%. But supply chain issues are easing.
- While expected sales are off their Q2 2022 peak of 1.9, they remain robust at 1.2 (up from 1.1). But forward orders eased to 3.9, the lowest since the pandemic-impacted Q3 2021 and below average, indicating that business conditions are likely to weaken further. Export expectations fell to 9.9 but are still above the 7.4 historical average.
Australia NAB survey labour 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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