National Australia Bank Business Survey for July 2025
Business confidence rises to 7, a three-year high
- strength in services and construction
- prior 5
Business conditions fall to 7
- prior 9
Some of the sub measures:
- business sales 11 in July, from 8 prior
- profitability 2, prior 4
- employment 1, from 4 prior
- quarterly growth in retail prices 1.1% in July, from 0.5% in June
- producer prices rose 0.9%
NAB comment on their report, in brief:
- "Overall, the survey points to an improvement in activity through Q2 and suggests that the worries globally have not materially influenced local hiring and investment decisions"
- "Generally, the services sectors, both consumer facing and for businesses, are stronger while retail and wholesale remain weaker."
- "The survey is consistent with improving economic growth, although still highlights the challenges around cost pressures faced by many businesses"
Price indicators in the survey pointed to pockets of ongoing inflationary pressures. Notably, quarterly growth in retail prices accelerated to 1.1% in July, from 0.5% in June, while producer prices rose at a 0.9% pace. "The survey is consistent with improving economic growth, although still highlights the challenges around cost pressures faced by many businesses," said Auld.
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Still ahead, I'm expecting a 'hawkish cut' from the Reserve Bank of Australia today:
