Australian business conditions were robust in the first half of 2018 and a cyclical-peak was reached in April of that year. Although they remained well above average for some months, readings began to slip and by the end of 2018, they had dropped to below-average levels. Readings have now oscillated within a fairly narrow band for the last four months.
According to NAB’s latest monthly business survey of 400 firms conducted in the second half of April, business conditions have continued their swing between the lower side of “normal” and “somewhat on the low side”. Since the latter part of 2018, NAB’s conditions index has bounced between 3, which is on the low side, and 7, which is about average. The latest reading produced by the index is 3.
Westpac senior economist Andrew Hanlan said, “The NAB business survey for April was particularly weak, providing further evidence of the economic slowdown which emerged in mid-2018 and has extended into 2019.”
