AUD: NAB monthly business survey points to slight easing in business conditions – NAB

By FXStreet FXStreet (Delhi) – Research Team at NAB, notes that the NAB Business Survey suggested a slight easing in Australian business conditions in December, but showed little signs (beyond normal monthly volatility) of a fundamental weakening in the non-mining recovery.

Key Quotes

“Business conditions eased back to (still above average) +7 index points in December (from +10), as sales, profitability and employment all took a step back. Employment conditions eased back to neutral – a reading consistent with modest employment growth but counter to the (well) above trend employment growth reported in the official statistics.

Service sectors remain the best performers, although it was disappointing to see a sharp moderation in retail conditions, while very weak construction could point beyond the mining downturn to suggest that the peak in the residential construction cycle may be fast approaching.

Capacity utilisation – a useful measure of the underlying health of the economy –eased significantly this month, which, if maintained, could pose a hurdle for future business investment. That said the trend still remains reasonably positive. Also on the positive side, forward orders lifted this month, indicative of a potential pick up in activity in the near term.

Business confidence remains positive, despite pulling back on …read more

Source:: FX Street