Overview

• NAB’s September survey showed the conditions index unchanged at +8, while business confidence rose three points to +7, above the long-run average.
• Sales strengthened by three points to +16 and profitability edged up to +6, extending an 11-point gain since May.
• The employment sub-index weakened and forward orders fell three points into negative territory, pointing to softer near-term demand.
• Price signals were mixed, with input costs slightly higher, quarterly retail price growth at 0.7%, and labour cost growth easing to 1.5%.
• The RBA held the cash rate at 3.60% as it flagged potential Q3 inflation upside, and NAB’s Sally Auld said conditions and confidence are consolidating just above average levels.