The NAB April Business Survey is out and it’s got something for everyone. For the rate doves, the lead Business Conditions Index softened:
And the internals dropped pretty substantially:
However, two other key indexes for the RBA are strongly inflationary. First and foremost, labour:
In sum, I would say that despite the weakness, this survey has eaten away at one of the RBA’s primary reasons for not hiking: that labour constraints have not been broad based. I’ll give this one to the hawks by a nose. Full survey available below.