Turf QLD Industry Alert |Business Conditions Remain Patchy Across Industries

Business Conditions Remain Patchy Across Industries

AiGroup, NAB, Roy Morgan Survey Results 14 August 2015.

The latest National Australia Bank (NAB) Monthly Business Survey showed overall business conditions remained above average in July, although the index eased by 4.0 points to +6.0 points. This indicated a net expansion in business activity in the month of July, but at a slower rate than in June (zero divides net expansion from contraction in the NAB survey).

Conditions continue to diverge across industries in the NAB survey. The services sectors continued to enjoy better business conditions, but mining, transport and utilities all recorded large declines this month (with net negative conditions). These results are in line with the Ai Group’s Australian PCI® July 2015, which similarly suggested a boost to overall economic activity in the month. However, most of the growth was concentrated in the services and residential construction sectors, while engineering, commercial construction and parts of manufacturing continued to contract in July.