Via UBS:
June business conditions booming at new post-GFC high of +15.1 (after +10.9) NAB’s survey of business conditions surged even further to a booming +15.1 in June-17 (UBS: ‘steady’, mkt: nf, average since 1997 of +5.1), the best since Jan-08, up from an already strong +10.9 in May. Mining retraced amid lower commodities (-5, after +5); but non-mining (un-weighted average) spiked to a ~decade high (+15.4 after +8.5). Employment intentions remain solid, consistent with ongoing faster jobs ahead (implying ~2% y/y).
Notably, capacity utilisation edged back, but after a ~decade high, still implying less spare capacity in the economy. Selling prices ticked up to the top of their recent range, but still only suggests moderate CPI. The wages bill lifted to a cycle high, & now implies a much better trend than Q1 GDP showing ~flat average earnings. Business confidence bounces to +9.3 (after +7.5), also staying above average Elsewhere, business confidence also bounced solidly to +9.3 (UBS: ‘steady’, mkt: nf), after retracing to +7.5 in May, to stay well above its average (+5.8 since 1997).
