Australia Business Sentiment Turns Negative In May: NAB

RTTNews | 35 days ago
Australia Business Sentiment Turns Negative In May: NAB

(RTTNews) - Australia business confidence turned negative in May underscoring that the economic activity continued to remain subdued into the second quarter, survey results from NAB showed on Tuesday.

The business confidence index dropped to -3 in May from +2 in April. At -6, the forward orders index remained deep in the negative zone. Capex dropped four points to +4, while capacity utilization rose slightly to 83.3 percent.

Capacity utilization remained above average indicating that the process of bringing supply and demand back into balance remains incomplete.

Cost and price growth measures re-accelerated in May. Labor cost growth advanced to 2.3 percent from 1.5 percent in April and purchase cost growth climbed to 1.9 percent from 1.3 percent.

Product prices, retail prices and recreation and personal services prices also increased at faster rates in May. The survey suggested that inflation will continue to moderate only gradually from here.

The business conditions index slipped slightly to 6 in May from 7 a month ago.

Employment rose by three points, while trading conditions and profitability dropped three points each in May.

NAB Chief Economist Alan Oster said "Overall, the message here is a mixed one for the RBA."

"There are warning signs on the outlook for growth but at the same time reasons to be very wary about the inflation outlook, and we expect the RBA to keep rates on hold for some time yet as they navigate through these contrasting risks," Oster added.

read more
Australia Business Confidence Strengthens; Consumer Confidence Weakens

Australia Business Confidence Strengthens; Consumer Confidence Weakens

Australia's business confidence improved in June to the highest since early 2003 but consumer sentiment remained deeply pessimistic in July, private survey results showed on Tuesday. The business sentiment index advanced to +4 in June from -2 in May, monthly survey data from NAB showed today. The increase was led by the strength in manufacturing and wholesale.
RTTNews | 7 days ago
RBA Minutes: Board Discussed Raising Cash Rate In June

RBA Minutes: Board Discussed Raising Cash Rate In June

The board of the Reserve Bank of Australia discussed the case for raising the cash rate at its June meeting citing slower-than-expected inflation but finally judged that the case to leave the rate unchanged was the stronger one, the minutes of the meeting showed Tuesday. At the June meeting, the bank had retained its benchmark rate at a 12-year high of 4.35 percent for a fifth straight meeting.
RTTNews | 14 days ago
Australia Private Sector Credit Gains 0.4% In May

Australia Private Sector Credit Gains 0.4% In May

Overall private sector credit in Australia was up 0.4 percent on month in May, the Reserve Bank of Australia said on Friday - in line with expectations and easing from 0.5 percent in April.
RTTNews | 18 days ago
Australia Inflation Exceeds Expectations In May

Australia Inflation Exceeds Expectations In May

Australia inflation accelerated more than expected in May, suggesting the Reserve Bank will remain hawkish at the August meeting. Consumer price inflation rose to 4.0 percent in May from 3.6 percent in April, the Australian Bureau of Statistics reported Wednesday. Inflation was expected to rise to 3.8 percent.
RTTNews | 20 days ago
Australia Consumer Sentiment Rises In June: Westpac

Australia Consumer Sentiment Rises In June: Westpac

Australia consumer confidence improved in June but remained firmly in the negative zone largely due to concerns about inflation, growth and interest rate outlook, survey data from Westpac showed on Tuesday. The Westpac-Melbourne Institute Consumer Sentiment Index rose to 83.6 in June from 82.2 in May.
RTTNews | 21 days ago