Analysts at TD Securities note that Australia’s NAB August Business confidence fell as they had expected from +7 to +4 but business conditions (i.e. actual variables not animal spirits) rose from +13 to +15.
Key Quotes
“Aug labor costs rose to +1.3% from +0.9% in the prior month. Even though Jul/Aug labor costs are usually buoyant, this is highest Aug in a couple of years. Jobs growth has yet to generate wages growth, however. The RBA needs (1) lower AUD and (2) higher wages closer to 3% to hike. Box one is ticked, but not so much the other.”
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