Australia’s NAB Business Confidence rose from -2 to 4 in June, marking its highest level since early 2023 and returning to positive territory. However, Business Conditions fell from 6 to 4, indicating some ongoing challenges. Trading conditions decreased slightly from 11 to 10, profitability conditions dropped from 3 to 2, and employment conditions fell sharply from 5 to 0.
Labor cost growth slowed to 1.8% on a quarterly basis, down from 2.3% in May, while purchase cost growth eased to 1.3% from 1.7%. Overall product price growth decreased to 0.7%, down from 1.1%. Retail price growth, however, held steady at 1.5%, and recreation and personal services prices declined to 0.7% from 1.1%.
Gareth Spence, NAB Head of Australian Economics, noted, the survey signals “another soft quarter” in Q2. Capacity utilisation remains “high with demand and supply yet to fully normalise”.
“Price pressures continue to ease in a trend sense though the data certainly remains bumpy,” Spence added.
