| Actual | Previous | Revised | |
|---|---|---|---|
| Business Conditions Index | 18 | 12 | |
| Business Confidence Index | 6 | -1 | 0 |
Highlights
The NAB business survey for Australia showed improved conditions and a rebound in sentiment in January. The Reserve Bank of Australia does not hold policy meetings in January, so survey responses in the month were not impacted by any changes to monetary policy or offical comments about the policy outlook. In contrast, more up-to-date consumer confidence data also released today (Westpac-Melbourne Institute Index of Consumer Sentiment) were based on survey responses collected just before and just after last week's rate increase by the RBA and show a sharp fall in sentiment in February.
The NAB survey's business conditions index rose from 12 in December to 18 in January, with respondents reporting stronger trading conditions, employment, forward orders and profitability. The survey, however, also shows labour costs and retail prices grew at a faster pace in January, likely reinforcing RBA officials' concerns about the strength of inflationary pressures. The survey's business confidence index picked up from zero in December to 6 in January, largely driven by the wholesale, transport and utilities sectors, with sentiment broadly stable in other sectors.
The NAB survey's business conditions index rose from 12 in December to 18 in January, with respondents reporting stronger trading conditions, employment, forward orders and profitability. The survey, however, also shows labour costs and retail prices grew at a faster pace in January, likely reinforcing RBA officials' concerns about the strength of inflationary pressures. The survey's business confidence index picked up from zero in December to 6 in January, largely driven by the wholesale, transport and utilities sectors, with sentiment broadly stable in other sectors.
Definition
The National Australia Bank (NAB) Business Survey is based on a survey of around 500 firms across the non-farm business sector on their assessment of current business conditions and their sentiment about the outlook. The survey's business conditions index covers trading, profitability, employment, forward orders, stocks, and exports, with respondents also providing responses on changes in costs and selling prices. The survey is conducted in the second half of each month.
Description
The survey of business conditions and confidence offers timely updates on how Australian companies are performing and reacting to unfolding events including news about the overall economy and policy developments. as well as moves in the stock market and changes in interest rates. Investors can use the data to help forecast economic activity and better understand how business conditions and expectations affect sales, employment, investment and other economic outcomes.
