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Andrew Hanlan, Research Analyst at Westpac, notes that in June, Australia’s business conditions were elevated and business confidence is in line with average levels – as was broadly the case in May.

Key Quotes

“The business conditions index advanced by 1pt in June, to +15. (Note, May was revised lower to +14 from +15.)”

“Business conditions updates for May and June are a little lower than over the past six months, which were particularly strong readings.”

“Even so, elevated readings on business conditions are consistent with the strengthening of domestic demand over the past year or so, although overstating the pace of demand growth.”

“Business confidence declined by 1pt to +6, to be in line with the long-run average but down from readings earlier in the year.”

“As for the details around business conditions in June: trading conditions advanced by 3pts to +23; profitability rebounded partially, up 5pts to +17; while employment conditions eased for a second month, down 4pts to +5.”