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HomeEconomyAustralian business activity strong in April, cost pressures remain a challenge

Australian business activity strong in April, cost pressures remain a challenge


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SYDNEY (Reuters) – Despite high inflation and rising interest rates, business conditions in Australia remained strong in April, supported by robust sales and a strong labor market, while cost pressures Still poses a challenge for businesses.

National Australia Bank Survey (OTC: 85NABZY) Ltd (NAB) published on Monday Business conditions index down two points + in April, but still well above its long-term average.

The volatility indicator of confidence rose slightly to 0, compared with -1 in March, which indicates that companies are optimistic and pessimistic in equal proportions.

NAB Chief Economist said, “Demand remains very strong, with improving terms of trade suggesting that employment has also remained strong, reflecting labor market strength. Strength” Alan Oster.

“Overall, surveys suggest the economy remains resilient. We continue to expect slower consumption growth as rising interest rates further impact households, but this The speed and magnitude of the situation remain uncertain.”

Markets still favor a pause in rate hikes in June, although they have already priced in a slim chance of another rate hike in August.

The sales metric for the survey dropped 4 percentage points and is still very high + In April, the employment index rebounded by 1 points to +

and profitability decreased by 2 percentage points to + .



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