NAB’s Monthly Business Survey – May 2014

Share

Share

Business confidence was unchanged in the month, at around long run average levels. That result was surprising, with firm’s still discounting persistently soft levels of business conditions and the negative sentiment surrounding the Federal budget – including the post-budget collapse in consumer confidence.

Against that business was relatively sheltered from the Budget. Some leading indicators from the survey improved (especially new orders), but generally remain soft. However capital spending plans remain subdued and capacity utilisation broadly unchanged at relatively low levels.
Business conditions dipped slightly again in the month, revealing an emerging trend lower since the start of the year.

Together with the poor conditions reported by wholesale – a bellwether industry – it suggests little scope for improvement in domestic demand. Conditions varied significantly across industries: looking through the monthly volatility service industries remain the stand out performers, while most other industries are reporting negative conditions (the weakest being mining). Employment and profits remains soft (the latter is negative), while sales eased (still positive).
Our wholesale leading indicator suggests much weaker underlying conditions, pointing to further below trend economic growth in the second quarter of 2014 – and little near term improvement in prospect in demand.
Firms continue to report relatively benign inflation pressures, assisted by lower purchasing costs and relatively low labour cost pressures. Retail prices also eased.

For further information, see NAB Research & Insights.

 

Announcements

SEE ALL TOPICS

Related Articles

  • Media Release

NAB partners with Plenti for secured auto/EVs and renewables lending

NAB has agreed to enter a strategic partnership with fintech lender Plenti Group Limited.

  • 28.11.2023
  • Time to read 1 min read
  • Media Release

NAB the first Aussie bank to launch digital wallet-enabled virtual corporate card

In an Australian banking first, NAB has launched a new, plastic-free, virtual corporate credit card to help businesses streamline, modernise and simplify their expenses.

  • 14.11.2023
  • Time to read 1 min read
  • Full Year Results

NAB announces 2023 Full Year Results

Releasing NAB’s 2023 Full Year Results, NAB CEO Ross McEwan said the bank and its customers were benefitting from the consistent execution of its strategy over several years.

  • 09.11.2023
  • Time to read 2 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.