This morning the closely-watched and highly-regarded NAB business confidence report for July will be released.
Here’s the state of play.
- In June, the surveys confidence gauge rose to +10, the highest level seen since September 2013. That was right before the last federal election.
- Confidence among all sectors except mining recorded a net “positive” score in June, meaning optimists outnumbered pessimists across almost all business sectors.
- Not only did confidence improve, the separate conditions measure also jumped to +11, a level last seen in November 2014.
- There were strong improvements recorded for trading conditions and profitability. Forward orders and employment levels also improved.
- The improvement in conditions led the NAB to state “the trend is now decisively positive, suggesting the long anticipated recovery in the non-mining economy is finally gaining some traction”.
- Given the solid lift in confidence and the continued uptrend in the survey’s capacity utilisation measure – it rose to 81.3% from 80.9% in May – another similar strong reading today could be influential, particularly given rates markets are still evenly split on whether or not the RBA will reduce the cash rate further.
The report will be released at 11.30am AEST. Business Insider will have full coverage as soon as the data drops.