NAB survey shows drop in business conditions
(10 May 2011 – Australia) The National Australia Bank (NAB) Business Survey for April showed a fall in business conditions due to a drop in profitability.
NAB showed that business conditions fell four points to plus five points, staying above the zero level separating expansion from contraction. The business confidence index fell two points to plus seven points.
'Business conditions slipped back in April, unwinding some of the strong surge in March. This was driven by a sharp fall in trading conditions and a drop in profitability, although employment edged higher,' NAB said in a statement accompanying the survey.
By industry, further falls in conditions were evident in manufacturing, construction and personal and recreational services, NAB said.
'Mining, while volatile, also reported much weaker conditions. Against that, wholesaling showed both better confidence and activity levels.'
The report said business confidence fell significantly in manufacturing and mining, which was consistent with declines in conditions, but strengthened in transport and utilities and construction.
NAB said business confidence remained positive and is now in line with trends, although the report added it appears the high Australian dollar is beginning to erode sentiment.
The bank also predicted the Reserve Bank of Australia (RBA) would raise rates twice this year, the first expected in June or July and the second in September.
'Business conditions slipped back in April, unwinding some of the strong surge in March. This was driven by a sharp fall in trading conditions and a drop in profitability, although employment edged higher,' NAB said in a statement accompanying the survey.
By industry, further falls in conditions were evident in manufacturing, construction and personal and recreational services, NAB said.
'Mining, while volatile, also reported much weaker conditions. Against that, wholesaling showed both better confidence and activity levels.'
The report said business confidence fell significantly in manufacturing and mining, which was consistent with declines in conditions, but strengthened in transport and utilities and construction.
NAB said business confidence remained positive and is now in line with trends, although the report added it appears the high Australian dollar is beginning to erode sentiment.
The bank also predicted the Reserve Bank of Australia (RBA) would raise rates twice this year, the first expected in June or July and the second in September.
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