The NAB quarterly business survey is out, and like its more frequent monthly counterpart, showed an economy that is doing okay but still likely to deliver sub-par growth in the quarters ahead.
The NAB said that confidence fell a touch from 7 to 6 while conditions rose from 0 to 1.
In a really positive sign though the NAB reported that three and twelve months out conditions look like they will be solid at 11 and 24. Importantly also capex plans increases from 18 to 21.
The NAB said that in summary:
Business conditions improved marginally as under performing industries improve. Forward indicators point to further modest improvement over coming months, but the economy will remain sub trend with soft labour demand. Medium term expectations for conditions flat.
Importantly even though there has been much talk since the budget of the crash in consumer confidence and the impact this will have on spending and the need for a recovery there is a clear trend improvement in business conditions over the past year.
That’s a good sign for the economy and a sign that even though the employment sub-index at 0 isn’t painting a picture of mega hiring the conditions which will allow for a pick up in employment are taking shape.