Australia NAB business confidence dropped another 2 pts to 7 in March, down from 9. Business conditions dropped 6 pts from February’s record high at 20 to 14. That’s 3 points lower than January’s 17.
Nonetheless, NAB noted in the release that “conditions remain well above average, with reasonably broad based strength across industries although retail continues to lag.” The historical average is at 5.5 and unchanged in trend terms.
“Business confidence eased again and is now only just above its long-term average, although leading indicators remain at solid levels, as is the employment index.” “The survey was conducted shortly after US President Trump’s announcement of tariffs on at least $50 billion of Chinese imports, which may have affected sentiment.”
Regarding inflation, “final product price inflation remains muted and retail prices declined. However, purchase cost growth has been moving higher since late 2016 providing a tentative sign of inflationary pressure.”
On wages, “labour cost (wage bill) growth moderated after rising the previous month.”
