Australia: Non-mining recovery may have cooled recently - TDS

Research Team at TDS, notes that Australia’s NAB Business Conditions drop 2 points to 7 from an upwardly revised 9 in July (was 8) while Confidence rose 2 points from 4 to 6.

Key Quotes

“Given there was hardly any cut in the cash rate passed on, it’s hard to point to the RBA cut as driving the boost in confidence. While both measures are at or above long term averages implying the near term outlook for the economy is positive, the downtrend in business conditions suggests the non-mining recovery may have cooled recently.

Major services and construction industries are showing the strongest business conditions but wholesale and retail industries are not faring as well. Keep a close eye here given Q2 GDP revealed weak consumptions growth.”