AUD: NAB’s Business Conditions and Confidence survey slipped - TDS

Research Team at TDS, notes that the NAB’s Oct Business Conditions and Confidence survey slipped during the month, both indices dropping 2 points to 6 and 4 points respectively.

Key Quotes

“The drop in the Business Confidence measure now has this index below its long term average, and while the conditions index is above its long term average, is now at the lowest levels seen since May 2015. Taking both readings at face value it does suggest some signs of moderation in the non-mining sectors of the economy. Areas that warrant closer monitoring are, forward orders, the first time this subcomponent dropped below zero since March, capacity utilisation declined and employment conditions deteriorated as well, pointing to a softer employment growth. That said the read on capex intentions was positive.”