National Australia Bank Business Survey for July 2025
Business confidence rises to 7, a three-year high
- strength in services and construction
- prior 5
Business conditions fall to 7
- prior 9
Some of the sub measures:
- business sales 11 in July, from 8 prior
- profitability 2, prior 4
- employment 1, from 4 prior
- quarterly growth in retail
prices 1.1% in July, from 0.5% in June - producer prices rose 0.9%
NAB comment on their report, in brief:
- “Overall, the survey points to an improvement in activity
through Q2 and suggests that the worries globally have not
materially influenced local hiring and investment decisions” - “Generally, the services sectors, both consumer facing and
for businesses, are stronger while retail and wholesale remain
weaker.” - “The survey is consistent with improving economic growth,
although still highlights the challenges around cost pressures
faced by many businesses”
Price indicators in the survey pointed to pockets of ongoing
inflationary pressures. Notably, quarterly growth in retail
prices accelerated to 1.1% in July, from 0.5% in June, while
producer prices rose at a 0.9% pace. “The survey is consistent with improving economic growth,
although still highlights the challenges around cost pressures
faced by many businesses,” said Auld.
—
Still ahead, I’m expecting a ‘hawkish cut’ from the Reserve Bank of Australia today:
- Reserve Bank of Australia expected to cut its cash rate this week by 25bp
- RBA poised to cut cash rate tomorrow after July pause
This article was written by Eamonn Sheridan at investinglive.com.