NAB June business surveys

NAB released its monthly business confidence and business conditions surveys and both showed a big increase. Conditions increased 5pts to 11pts and confidence increased 2pts to 11pts. Lower interest rates, a lower dollar and a good reaction to the Federal budget all contributed to more positive survey results. NAB said “Improvements in both confidence and conditions over recent months are starting to suggest a more convincing turnaround in the non-mining sectors is underway.” However, the bank’s chief economist, Allan Oster said there was a “disconnect” between the survey results and what businesses actually planned. Consumers were still cautious and businesses reluctant to hire and the effects of international events in China and Greece were yet to show up in the surveys. The confidence survey leads official employment figures by about six months and it suggests just enough job creation to keep unemployment figures in the 6% to 6.25% range.