NAB’s Monthly Business Survey – July 2014

Share

Share

Business confidence improved again in July, reverting back to post-election highs. Firms still appear unfazed by the federal government’s ‘tough budget’, possibly taking comfort in the bounce back in consumer confidence. A solid jump in business conditions and better forward orders is supporting the relatively optimistic position. Stronger sales and profits are driving the trend, but the recovery continues to be relatively jobless with the employment index seeing more moderate gains (remaining at subdued levels). Higher capacity utilisation rates suggest that the improvement is relatively capital intensive.

Business conditions rose in the month to their highest level since early-2010 – implying a strong start to Q3 demand. That said, much of the improvement is narrowly based. Construction surged again, propped up by high levels of building approvals that will drive construction activity for many months. Wholesale (a bellwether industry) also improved, but remains slightly negative – and are somewhat contrary to the kick up in forward orders. Changes in conditions varied across industries, as do the levels – construction and service industries are the stand out (mining and retail are weakest). In contrast to very strong readings for sales and profits, business is still very reluctant to employ.

Our wholesale leading indicator improved, but still suggests weak underlying conditions and below trend economic growth in the second quarter of 2014 – with moderate near term growth in prospect for demand.

Read the full survey at NAB Monthly Business Survey – July 2014.

Topics

SEE ALL TOPICS

Related Articles

  • Climate

NAB backs new renewable wind farm in Far North Queensland

NAB today announced it is the only Australian bank providing project finance for global renewable energy power producer Neoen to build a $370 million wind energy hub in Far North Queensland.

  • 20.09.2021
  • Time to read 2 min read
  • Community

BBQs at the ready for Western Australia’s first AFL Grand Final

Australia’s favourite past time of firing up the BBQ will be in overdrive this weekend with Western Australians expected to spend big and celebrate hard.

  • 20.09.2021
  • Time to read 3 min read
  • Economy

NAB CEO Opening Statement to the House of Representatives Standing Committee on Economics

Current forecasts show 80 per cent of eligible Australians will have had their first jab within three weeks, and their second jab by mid-November. This is our light at the end of the tunnel.

  • 08.09.2021
  • Time to read 4 min read

Quick links

National Australia Bank — NAB

Sometimes When The Unexpected Happens, We Realise What We Truly Value. Whether A Home, Farm, Business Or Your Passion, NAB Is Here To Support You.

Business Research and Insights

For more business news and analysis, visit NAB’s Business Research and Insights.