Australia NAB Business Conditions Ease; Confidence Improves

RTTNews | il y a 45
Australia NAB Business Conditions Ease; Confidence Improves

(RTTNews) - Australian business conditions eased in May amid ongoing profitability pressures and soft demand, while business confidence improved from the last month, survey data from NAB showed on Tuesday.

A monthly survey conducted by Westpac showed that consumer confidence rose moderately in June, underpinned by interest rate cut and softening inflation. The business confidence index rose to 2 in May from -1 in April. Meanwhile, the business conditions indicator dropped to zero from 2 in the previous month.

The NAB said the fall in business conditions over recent quarters helped to narrow the gap between business confidence and business conditions.

"Overall, business conditions remain weak," NAB Chief Economist Sally Auld said. "If this continues in coming months, it will be difficult for confidence to rise from current levels."

"We will watch whether there is a more sustained softening in labor demand, with the employment index easing to below average levels," added Auld.

The survey showed that confidence strengthened in all industries except manufacturing, mining and wholesale.

Due to the fall in employment, business conditions eased by one point. The profitability index remained negative at -4 and trading weakened to +5 index points. Capacity utilization rose to 82.3 percent from 81.4 percent in the prior month, partially reversing the large decline seen in April.

Price indicators were mixed in May. Labor costs growth was strong at 1.7 percent in quarterly equivalent terms, while purchase costs growth eased to 1.1 percent, as did final product price growth, at 0.5 percent. In contrast, retail price growth held steady at 1.2 percent in May.

The Westpac-Melbourne Institute Consumer Sentiment Index rose 0.5 percent to 92.6 in June from 92.1 in May.

Reserve Bank of Australia's May interest rate cut together with moderating inflation are providing significant boosts, particularly around buyer attitudes towards major purchases, the survey showed.

However, more sluggish economic growth and the unsettled situation around global trade are continuing to weigh heavily on expectations, Westpac said.

read more
RBA Board Says Another Rate Cut Inconsistent With Cautious Stance, Minutes Show

RBA Board Says Another Rate Cut Inconsistent With Cautious Stance, Minutes Show

Reserve Bank of Australia's policymakers said cutting the interest rate for a third straight time within the gap of four meetings would be inconsistent with the cautious monetary policy stance, the minutes of the July monetary policy meeting showed Tuesday. Majority of members said that it would be prudent to wait for confirmation that inflation would sustainably return to target as forecast.
RTTNews | il y a 3
Australia Building Permits Climb 3.2% On Month In May

Australia Building Permits Climb 3.2% On Month In May

The total number of building permits issued in Australia was up a seasonally adjusted 3.2 percent on month in May, the Australian Bureau of Statistics said on Wednesday - coming in at 15,212.
RTTNews | il y a 16
Australia Central Bank Unexpectedly Maintains Status Quo

Australia Central Bank Unexpectedly Maintains Status Quo

The Reserve Bank of Australia adopted a wait-and-see approach on Tuesday, defying expectations for a quarter-point rate cut but confirmed that an easing cycle is coming. The policy board, governed by Michele Bullock, decided to hold the cash rate target at 3.85 percent. A majority of six members voted to hold the rate, while three members sought a change from 3.85 percent.
RTTNews | il y a 17
Australia Inflation Eases In May

Australia Inflation Eases In May

Australia's consumer price inflation softened more than expected in May, giving space for the central bank to lower its interest rate. The monthly Consumer Price Index indicator rose 2.1 percent year-on-year, following the 2.4 percent increase in April, the Australian Bureau of Statistics reported Wednesday. A similar lower rate was last seen in October 2024.
RTTNews | il y a 30
Australia GDP Adds 0.2% On Quarter In Q1

Australia GDP Adds 0.2% On Quarter In Q1

Australia's gross domestic product expanded a seasonally adjusted 0.2 percent on quarter in the first quarter of 2025, the Australian Bureau of Statistics said on Wednesday.
RTTNews | il y a 51