National Australia Bank survey of business for July 2022.
Business conditions 20
Business confidence 7
Both measures significantly improved from June. The ‘conditions’ measure is more objective than the sentiment-based ‘confidence’.
- strength in conditions remained broad-based across states and industries
- a notable pickup in the construction sector
- survey suggests that despite global and domestic economic headwinds, demand has remained strong
- inflationary pressure continues to build suggesting that inflation is yet to peak
On inflationary pressures, check out the costs and prices rows below in the pic:
- purchase costs climbed to a record high of 5.4%
- labour costs, retail prices also notably higher
Helping to drive inflationary pressure is that higher capacity utilization also.
Wages up, prices up, capacity tight … the implications for the RBA are for higher rates. Next meeting is September 6, +50bp looks to be a lock, again.