The July NAB Business Survey has printed a another weak result. There was improvement in a number of headline segments:
Confidence jumped, obviously, according to NAB on easing international fears. However, conditions and profitability both dived. Oddly, labour costs and input surged. The weakness in employment eased but is still at levels associated with rising unemployment.
On the segments, it appears the gloss is coming off the retail recovery and there is growing weakness in wholesale, property and finance, recreation and construction. Mining is at the bottom of its recent positive range. Manufacturing is getting less weak.
On states it’s all down hill except WA and neutral in QLD:
NAB notes that the survey is consistent with trend growth. Yet the survey is also showing that large swathes of business are still caught in a margin squeeze or remain outright weak.
