Australia Enterprise confidence (Might) -4 (prior 0) and Circumstances +8 (prior +14)

Nationwide Australia Financial institution Enterprise Survey for Might 2023. Not an excellent report. Confidence and situations each dropped. these are the 2 headlines to the report.

Demand development is being hit by RBA price hikes, which is what the Financial institution is attempting to do given they can not imp[act supply chains with the tools they employ.

slower gains in sales (+14 in May from +22 in April) and employment (+4 in May from +11 in April) forward
orders is viewed as a leading indicator of demand, fell to -5

For inflation, not good signs:

labour costs rose to +2.2% q/q, from 1.9% in the previous survey – this is an inflationary pressurepurchase costs 2.5%
from 2.2%, also an inflationary pressure

NAB comments:

“With the easing in business conditions accelerating and
forward orders falling sharply, there is a growing risk that the
RBA’s attempts to maintain an even keel ‘run aground’,”
“The trend over coming months will be important as the RBA
tries to assess whether it has done enough and if underlying
inflation pressures are easing in a timely way.”

—

NAB conducts both a monthly business survey and a quarterly survey.

both surveys aim to provide insights into the state of the economy and the performance of businesses

There are some key differences between the two, apart from the obvious (frequency of data collection and timeliness of release) a key difference is scope of coverage:

The monthly business survey is focused on providing a timely snapshot of the business environment in Australia. It covers a wide range of sectors and provides data on business conditions, business confidence, sales, profits, employment, and other key indicators.The quarterly survey is more in-depth. It includes more detailed questions on specific topics such as investment intentions, borrowing, and exports.The quarterly survey has a larger sample size.

While both surveys provide valuable insights into the current state of the economy, the quarterly survey is better suited for identifying longer-term trends. This is because it includes more detailed questions on investment intentions and other forward-looking indicators that can provide insights into future economic activity.