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28 Jan 2014
Australian business conditions hit 2½ year high
FXstreet.com (Barcelona) - Business confidence was broadly unchanged in December (+6) while business conditions jumped (up 7 points to +4 index points) to a more than 2½ year high.
According to Alan Oster, Chief Economist at NAB: "Business conditions jump to more than 2½ year high, while confidence broadly unchanged – both now near trend levels. Sales and profits up sharply– especially in wholesale, transport and services – reducing excess capacity slightly. Employment index better, but still imply flat job market."
"Soft forward indicators question the sustainability of the lift in conditions. Price inflation still moderate with margins under pressure as AUD increases input costs. Unemployment key to rate outlook. Domestic and global forecasts largely unchanged. But better near term business conditions and the CPI spike delays next RBA cut from May to late 2014."
According to Alan Oster, Chief Economist at NAB: "Business conditions jump to more than 2½ year high, while confidence broadly unchanged – both now near trend levels. Sales and profits up sharply– especially in wholesale, transport and services – reducing excess capacity slightly. Employment index better, but still imply flat job market."
"Soft forward indicators question the sustainability of the lift in conditions. Price inflation still moderate with margins under pressure as AUD increases input costs. Unemployment key to rate outlook. Domestic and global forecasts largely unchanged. But better near term business conditions and the CPI spike delays next RBA cut from May to late 2014."