Australia: Firms continue to see favourable business environment – NAB

By FXStreet Business confidence in Australia came at 5 vs 6, while business conditions stood at 9 vs 12. As NAB notes, while this month’s business survey saw both business conditions and confidence retrace some of the strong gains, overall outcomes continue to point to a business environment that is highly favourable to Australian firms.

NAB Monthly Business Survey – April 2016

The NAB Business Survey continues to point to a very favourable business environment for Australian firms, despite giving back some of the strong gains witnessed in last month’s survey. Service industries have persistently been the best performers, although other sectors are looking relatively upbeat – as the benefits of lower oil prices and earlier AUD depreciation continue to flow through.

Given these result, we have maintained our upbeat near-term outlook for the Australian economy. However, subdued inflation pressures in the Survey and a very weak CPI result for Q1 suggest the RBA has scope to further cement the non-mining recovery with an additional cut to the cash rate at its next meeting (although it is likely to be a close call).
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Source:: FX Street