Australia: Continuation of the very upbeat conditions for firms - NAB

The NAB Quarterly Business Survey showed a continuation of the very upbeat conditions for firms into the September quarter, points out the research team at NAB.

Key Quotes

“Confidence has not been quite as exuberant, with many firms still worried about margin pressures and the demand outlook. Despite that though, we are still seeing solid expectations in terms of the near-term outlook, while business expectations for the longer-term (1 year ahead) outlook have generally strengthened. Investment expectations for the next year lifted further, with most industries pointing to above-average capex.”

“Employment intentions continue to trend higher and firms are now indicating much greater difficulty finding suitable labour. While most industries are performing well in the Survey, conditions in the retail sector deteriorated further, which is a concern given the importance of consumption to economic growth. A tighter labour market and tentative signs of a lift in wage pressures in the Survey could help to bolster demand conditions for retailers, but other challenges will likely remain.”