AUD: BS shows significant improvement in business conditions and confidence – NAB

By FXStreet Research Team at NAB, notes that the Australia’s NAB Business Survey revealed a significant improvement in both business conditions and confidence, suggesting the domestic business environment not only remains favourable but appears to be strengthening further.

Key Quotes

“In March, business conditions jumped to +12 points, its equal highest value since early 2008, reflecting above-average conditions in most industries. Service industries remain the best performers, although construction also closed the gap in March, manufacturing is looking more upbeat, and transport appears to be responding positively to lower fuel prices – in contrast, mining conditions remain extremely weak and retail was disappointing. All three components of conditions (trading, profits and employment) improved during the month, with the employment index particularly encouraging (the highest read since mid-2011), and indicative of on going labour market strength.

Capacity utilisation increased notably this month (and is now comfortably above long run averages), pointing to further improvement in the underlying health of the economy. This was in conjunction with a jump in business confidence (back to long-run average levels), helping provide some reassurance that the strength in business conditions can be sustained.

However, less encouragingly, forward orders dipped back into marginal negative territory – mainly due to lower …read more

Source:: FX Street