Overview
- NAB’s business conditions index rose two points to +9 in December as sales climbed to +16, profits to +7, and employment held at +4.
- Capacity utilisation eased 0.3 percentage points to 83.2% but remained elevated and broad-based across industries, NAB’s Sally Auld said.
- Measures of prices ticked higher over the three months to December, indicating modestly firmer cost pressures.
- Business confidence edged up to +3, with retail and manufacturing improving and services showing the strongest trend activity.
- Markets are watching the RBA’s meeting next week for a possible move from the 3.6% cash rate, with Wednesday’s inflation print seen as pivotal and recent minutes highlighting concern about capacity constraints.