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Australian June business confidence 4.0 vs. prior -3.0

National Australia Bank monthly survey of business, for June 2024

Business Confidence 4.0

prior -3.0

Business Conditions also 4.0

prior 6.0the conditions index is a more objective measure compared with the sentiment-driven confidence indexindex of employment
dropped 6 points to 0, under its long-run averagesales flat labour costs and purchase costs slowingproduct prices quarterly rate of 0.7%retail prices held at 1.5%

Comments from the report from NAB:

“While its only one month’s read, the employment index … may be signalling that the
broader slowing in the economy is flowing through more strongly
to labour demand”
“Price pressures continue to ease in a trend sense though
the data certainly remains bumpy”

The slide for the employment sub-index is concerning. The Reserve Bank of Australia have expressed their intention to preserve, as much as possible, the gains for the jobs market despite high interest rates. If the NAB survey is indicative those gains may be more difficult to hold onto. The probability of a rate hike at the next RBA meeting is not zero, watch the next inflation report:

The one critical number to watch for an August Reserve Bank Australia interest rate hike

Reserve Bank of Australia Governor Bullock

This article was written by Eamonn Sheridan at www.forexlive.com.

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