Australian August business confidence -4 vs. prior +1

National Australia Bank monthly survey of business, for August 2024

Business Confidence -4, lowest for the year so far

• prior +1

Business Conditions +3

• prior +6
• conditions to the lowest in 2-1/2 years
• employment index came in at +1, sharply down from +7 in July

Inflation indicators:

• growth in labour costs quarterly rate of +1.7% (from July’s +2.4%)
• purchase costs +1.6% in the quarter (from July’s +1.3%)
• retail prices +1.2% for the three months ending August (+1.0% in July)

National Australia Bank (NAB) comments:

• “suggests the period of very strong private sector
  labour demand seen throughout the post-COVID period may be
  coming to an end”
• “Conditions are now fairly clearly below average compared to
  the history of the survey which reflects the weakness seen in
  the private sector broadly as the economy has slowed.”

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A very poor survey. The Reserve Bank of Australia is holding its cash rate at the highest in 12 years, which is not helping.

This article was written by Eamonn Sheridan at www.forexlive.com.