Australia: Business conditions holding up near recent record highs - TDS

Australian business conditions are holding up near recent record highs at +15 in Aug from +14 in July, notes the analysis team at TDS.

Key Quotes

“This is well above the long term average and at the highest level since 2008. However there was a sharp fall in Business Confidence from +12 to +5, back to levels seen in July last year and below long term averages.”

“Looking at the sub components, there was some evidence that the better jobs numbers may be flowing into higher wages, with labour costs +1.2%/qtr vs 0.7%/qtr in July. Weighing on confidence was customer demand, government policy and cost pressures from energy and wages.”