SYDNEY: Australian business conditions and confidence softened modestly in April following a deterioration in trading conditions and profitability, as a high Australian dollar eroded sentiment even though employment edged higher, a survey showed.
National Australia Bank's (NAB) monthly survey of more than 400 firms also found inflation remained fairly subdued, and purchase costs eased after rising sharply in March.
"While business confidence softened in April, it remained positive and is now in line with trend," said NAB's group economist Alan Oster, adding if conditions persisted, it would imply around 3.5 percent in annualised economic growth.
The index of trading conditions slipped 9 points to 6, while profitability also fell 6 points to 4. The index of forward orders shed 3 points to stand flat.
Conditions were the weakest in manufacturing, CONSTRUCTION [], recreational services and even in mining.
NAB said labour costs showed robust gains in the month and this is pointing to a further tightening in the labour market.
The survey showed its measure of business confidence eased 2 points to stand at 7 in April, while business conditions slipped 4 points to 5. ' Reuters
National Australia Bank's (NAB) monthly survey of more than 400 firms also found inflation remained fairly subdued, and purchase costs eased after rising sharply in March.
"While business confidence softened in April, it remained positive and is now in line with trend," said NAB's group economist Alan Oster, adding if conditions persisted, it would imply around 3.5 percent in annualised economic growth.
The index of trading conditions slipped 9 points to 6, while profitability also fell 6 points to 4. The index of forward orders shed 3 points to stand flat.
Conditions were the weakest in manufacturing, CONSTRUCTION [], recreational services and even in mining.
NAB said labour costs showed robust gains in the month and this is pointing to a further tightening in the labour market.
The survey showed its measure of business confidence eased 2 points to stand at 7 in April, while business conditions slipped 4 points to 5. ' Reuters
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