NAB’s business confidence survey drops

Business confidence has eased according to NAB’s July survey, with the index falling to 4 from its previously recorded figure of 8. As part of the survey, NAB also measures business conditions and this index also fell 4 points to 6. NAB said much of the change in confidence came from mining and constructions firms and could be linked to growing concerns about China. NAB’s chief economist Alan Oster said, “While confidence eased in most industries, much of the change stemmed from mining and construction firms.” He continued by saying the trend indicates a “tightening of spare capacity which bodes well for non-mining investment and the labour market.”  Labour costs rose 0.2% and purchase costs rose 0.8% while retail prices rose 0.7%, all broadly in line with official figures.