Australia: Business conditions ease slightly - NAB

Australia’s small and Medium Enterprise (SME) business conditions fell 2pts in Q2 2018 to +11, while SME business confidence edged 1pt lower to +6pts, notes the research team at NAB.

Key Quotes

“Even after the easing in the quarter, both SME confidence and conditions remain above their historical averages.”

“According to Alan Oster, NAB Group Chief Economist: “Despite easing a little in Q2, SME business conditions remained at a high level in Q2, while SME business confidence also remains above average after declining in the last few quarters.”

“The outlook for the retail sector suggests little improvement, with the industry again recording the equal weakest confidence across all industries and one of only two to record negative conditions,” said Mr Oster.

“Demand continues to be the most significant constraint on SME output, followed by difficulty in finding suitable labour.”