Australia July business confidence 7 (prior 6) and conditions 12 (15)

National Australia Bank Business Survey for July

Business conditions 12

• prior 14, revised from 15

Business confidence 7

• prior 6

Confidence ticks up. Conditions, though, a bit of a fall (albeit still above its longer run average around 6. Please note that 'conditions' is a more objective measure whereas confidence is more subjective (obviously I guess, but though I'd point it out again)

Some of the sub-measures:

• profitability 10 (15 prior)
• sales 17 (21) … note 17 is a high reading
• employment 10 (5)
• capacity utilisation rate 82.2% (from 82.4%)

NAB comments:

• business sector looks relatively healthy
• "we expect to see enough employment growth to see a gradual reduction in spare capacity, which should in time see a rise in wage growth, and a more general lift in inflation"

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AUD impact is barely noticeable. (Scalpers might disagree with me)

I am slightly ruffled by the fall in conditions, but only slightly as it is, as I said above, still at a solid high level. Still, though …. 'conditions' been on the slide since February (down 7+ points since then).

If anything I guess more of the same … growth but not at a blistering pace, to come.