Australia’s NAB Business Confidence Index for July revealed an upward tick, moving from -1 in June to 2. However, Business Conditions saw a slight dip from 11 to 10. Delving into specific metrics, readings for trading conditions, profitability, and employment remained unchanged with the previous month, all settling at 16, 10, and 6 respectively.
Notably, the month saw a pronounced rise in price and cost growth. Labour cost growth surged to 3.7% in quarterly equivalent terms, up from June’s 2.3%, and purchase cost growth escalated to 2.6%, a jump from the previous month’s 2.2%. Furthermore, final price growth climbed to 2%, doubling June’s 1%.
Commenting on the findings, NAB Chief Economist, Alan Oster, remarked, “Business conditions in July remained resilient and have largely held steady at above-average levels over the past few months.”
He added, “While business confidence rebounded to positive territory, overall confidence remains muted.”
Oster further noted the inflationary pressures highlighted by the survey, noting, “Despite the Q2 CPI release indicating an improvement, the survey underscores that the upward pressure on inflation remains significant.”
