The closely watched NAB Australian business survey for June will be released later on this morning.
Here’s the state of play.
- The NAB survey is based on the responses of over 540 firms across Australia’s non-farm business sector.
- The survey is usually conducted in the final week of each month.
- In May business confidence and conditions both rose to +7, largely on the back of the well-received federal budget and RBA interest rate cut earlier in the month.
- The confidence reading was the highest seen since August 2014 and on the conditions front, October 2014.
- Gauges on trading conditions, profitability, employment, forward orders and exports also improved in June.
- Recent consumer-based sentiment surveys have been skittish, suggesting short-term factors, rather than longer-term views, are influencing sentiment levels across the country.
- Take Westpac’s consumer sentiment survey, for example: in May sentiment soared on the back of the federal budget being “less-bad” than many consumers feared. Fast forward to June and sentiment fell like a stone, recording the largest monthly decline since May 2013 on the back of Australia’s weak March quarter GDP report. Similar movements have also been seen in the weekly ANZ-Roy Morgan consumer survey.
- Given the timing of the NAB’s survey period – late June – there is a risk that sentiment could be negatively impacted by fears surrounding Greece and China that were amplified during this period.
The report is scheduled for release at 11.30am AEST. Business Insider will have full coverage as soon as the data drops.