NAB has released its monthly business survey for September, revealing Australia’s business conditions remain “rock solid”.
NAB Chief Economist, Alan Oster, affirms Austalia’s business landscape is in good stead stating, “business conditions at these levels tell us that the business sector in Australia is doing very well”.
The report did indicate retail business conditions remain a “significant concern”, as the industry continues to lag behind at negative levels.
Mr Oster states of the current retail climate:
“The sustained weakness in retail conditions should justifiably be raising doubts around expectations for any imminent and sustained rebound in consumer spending, although tough competition and other margin pressures are likely behind the result as well”.
“Our previous concerns around the consumption outlook remain well entrenched, especially following very poor retail sales in August and stubbornly weak retail conditions in the NAB Survey.”
NAB’s survey found business conditions remained steady at 14 points – close to the best reading in nine and half years, following a significant decline the previous month. They also follow April’s business confidence reading of a seven year high.
Mr Oster believes the Australian labour market is set to improve as it heads into 2018, as the economy is better prepared to face any challenges. This should, in turn, allow the RBA to shift away from emergency stimulus settings by the second half of 2018.
“Elevated underemployment, an elevated Australian dollar, household debt and peaks in LNG exports and housing construction are all potential hurdles that will ensure that the RBA proceeds with caution”.
