Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Business conditions ‘significantly lower’ than before GFC

Business conditions eased over August and are still significantly lower than pre-GFC levels.

The latest NAB Monthly Business Survey, released this week, shows a sharp drop in profits and sales drove the unwinding in August.

The report pointed to the employment index, which remains unchanged at low levels, conforming to expectations of a “relatively jobless recovery”.

Advertisement
Advertisement

“The strong improvement in business conditions recorded in July was short-lived, unwinding significantly last month,” the report said.

“The business conditions index dropped four points in the month (following a five point increase in July) to four-plus index points,” it said.

“At this level, business conditions are still well up on 2013, but are significantly lower than the pre-GFC years and slightly below the long run average of the series (five-plus since 1997) – suggesting the moderate economic growth environment is set to continue.”

The decline in business conditions during the month reflects an unwinding of some of the narrow gains seen in July, the report said, highlighting the “particularly stark” manufacturing sector, which dropped 13 points following an 18-point improvement in July to equal second lowest of the industries along with mining.

“Business confidence eased back as well, but remains close to the improved levels seen since last year’s election,” the report said.

NAB has forecast that the unemployment rate will peak at 6.5 per cent by the end of the year and expects the official cash rate to remain steady until late 2015.

 

Business conditions ‘significantly lower’ than before GFC
mortgagebusiness

Latest News

The corporate regulator has proposed to use its product intervention powers to address “significant detriment” caused by continuing cre...

The federal government’s fund manager has paused investment rounds on the $2-billion Australian Business Securitisation Fund in light of c...

The banking sector’s commitment to extend loan repayment holidays for distressed borrowers could prolong the deterioration in credit quali...

FROM THE WEB
podcast

LATEST PODCAST: Support for current broker remuneration model

Do you expect COVID-19 to reduce or increase your business flows?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.