The NAB business survey weakened in May despite some still impressive headline numbers:
NAB puts a rather stupidly bullish spin on it:
This month’s NAB Business Survey remains true to the narrative of an ongoing recovery in the non-mining sectors of the economy, building on the already solid growth seen in the recent National Accounts. Business conditions remained at an elevated level in May (at +10 index points), which is an above average result and close to post-GFC highs. Services are continuing to lead the way, which now includes distributional services such as retail, while manufacturing has pulled back and mining (and related sectors) still look weak. The elevated level of business conditions (unchanged from last month) was due to a notable improvement in trading (sales) and profitability, which offset a disappointing moderation in employment demand, which is back to subdued levels – consistent with more moderate employment growth in recent months.
