The rise was led by very strong trading conditions in the month; but both profitability and employment are also well above average, NAB said in a release.
“….We continue to expect strong prints for wages and inflation to continue in the near term,” NAB noted.
“A cash rate peak above 4 per cent will have a significant impact on economic growth, and we expect GDP to be below 1 per cent over both 2023 and 2024 despite the more optimistic near-term outlook. We also expect the RBA will need to cut interest rates in 2024 to closer to neutral to support growth as inflation moderates,” NAB said.
Manufacturing was one of the sectors that led the improvement in business conditions, though conditions also remain strong in the retail sector.
“Overall, the survey suggests the economy has remained resilient to headwinds from inflation and higher interest rates. Demand has remained elevated, likely supported by strong population growth, and concerns about global growth prospects appear to have eased,” NAB added.
ALCHEMPro News Desk (DS)
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