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.”
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