| Actual | Previous | |
| Business Conditions Index | 3 | 3 |
| Business Confidence Index | -14 | -24 |
Highlights
The NAB business survey for Australia showed that sentiment remains weak but its business confidence index continued rising to minus 14 in May from minus 24 in April after plunging to minus 29 in March from zero in the prior month as supply disruptions caused by the Mideast conflict are not as severe as initially feared.
The business conditions index stayed at plus 3 in May after falling to the level in April from plus 6 in March. Capacity utilization fell to 81.9%, dropping below 82% for the first time in 12 months in light of higher borrowing costs, a result of credit tightening by the Reserve Bank of Australia aimed at cooling off an overheating economy.
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.