In July, Australian business conditions remained strong, with above-average sales, profits, and employment. However, inflationary pressures were still present, as labor costs and prices rose.
A survey conducted by National Australia Bank Ltd (NAB) revealed that its index of business conditions fell to +10 in July from an upwardly revised +11 in June. The measure of confidence increased by three points to +2.
The survey also indicated that sales remained steady at +16 in July, while employment and profits remained at +6 and +10, respectively. Forward orders, a leading indicator of demand, increased by one point to -1.
NAB’s chief economist, Alan Oster, stated, “Business conditions continued to show resilience in July and have been broadly steady in the past couple of months at above-average levels.”
The survey also highlighted a rise in labor costs, which jumped to 3.7 percent in quarterly terms, likely due to mandated wage increases. Purchase costs also increased, particularly electricity prices, and quarterly growth in retail prices nearly doubled to 2.6 percent.
These inflationary pressures could impact the next official reading of consumer prices, which had seen a decrease in the second quarter.
The Reserve Bank of Australia chose not to raise rates at its August policy meeting, as it hoped for a continued slowdown in inflation. However, Oster emphasized that upside pressures to inflation remain significant.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.