Australian business activity off record highs as lockdowns bite-survey By Reuters

© Reuters. FILE PHOTO: An employee wears a protective face mask while ringing up a customer at a specialty grocery store following the easing of restrictions implemented to curb the spread of the coronavirus disease (COVID-19) in Sydney, Australia, June 17, 2020. R SYDNEY (Reuters) – A measure of Australian business conditions fell from record



© Reuters. FILE PHOTO: An employee wears a protective face mask while ringing up a customer at a specialty grocery store following the easing of restrictions implemented to curb the spread of the coronavirus disease (COVID-19) in Sydney, Australia, June 17, 2020. R

SYDNEY (Reuters) – A measure of Australian business conditions fell from record highs in June as coronavirus lockdowns in New South Wales and Victoria curbed sales and undermined confidence, though activity was still solid in historical terms.

National Australia Bank (OTC:)’s index of business conditions dropped 12 points to +24 in June, after climbing 5 points in a very strong May survey.

The survey’s measure of confidence slipped 9 points to +11, though that was still above the long-term average.

“The decline in conditions was broad-based across states but led by a significant decline in Victoria coming off the back of the lockdown that started in late May but was eased, in a series of steps, over June,” said NAB chief economist Alan Oster.

However, as the lockdown in Victoria eased, another began in Greater Sydney which looks set to extend for several weeks.

“The hope is that, as like previous episodes of shutdowns, that businesses bounce back on reopening,” added Oster. “While, there is less fiscal support around, businesses conditions have been strong and hopefully the recovery continues.”

The survey measure for trading, or sales, fell 10 points to a still-high +35 in June, while profitability lost 13 points to +25 and employment 8 points to +17.

Capacity utilisation dipped back to 83.9%, while forward orders shed 9 points to +15.

Confidence fell in all industries except mining and manufacturing, with recreation & personal suffering a steep 27 point decline as businesses were shut.

The NAB survey was conducted from June 18-30, catching the start of the Sydney lockdown.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

The Fund Times
ADMINISTRATOR
PROFILE

Posts Carousel

Leave a Comment

Your email address will not be published. Required fields are marked with *

Latest Posts

Top Authors

Most Commented

Featured Videos