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NAB said the June quarter marked the second consecutive fall from the “election-driven high” of 2013 with most states experiencing a drop in sentiment.
“The monthly survey also showed some deterioration recently, but lifted expectantly in June,” NAB said.
“Conditions edged up a point – reducing the gap with confidence further – but are still at levels consistent with moderate (and uneven) economic growth.”
NAB said that strength in the Australian dollar is having a mixed impact on industry, with import and trade exposed sectors seeing it as a headwind.
However, retailers and wholesalers are seeing the benefits from renewed dollar strength, through reduced purchase costs.
“Business conditions, in level terms, remain soft outside of the services sector,” NAB said.
“Recreation and personal services and finance/property/business services report the most sportive businesses conditions, while mining continues to be very weak.”