Business confidence rises despite Brexit, election campaign

Tuesday, 12 Jul 2016 09:29:55 | Michael Janda

Manufacturing is among the sectors enjoying positive conditions. (ABC TV)

Business confidence has rebounded back to the strong levels seen in April, with trading conditions around post-financial crisis highs.

NAB's widely watched monthly business survey was undertaken in June amidst the uncertainty generated by the Brexit vote and Australia's federal election campaign.

It shows business confidence bouncing back to +6, a level last seen in April, and conditions surging from +10 to +12 in June.

NAB said that level of business conditions is consistent with post-GFC highs.

"We are very much seeing a continuation of the positive trends evident in the survey for some time now," noted NAB's chief economist Alan Oster in the report.

"Strong activity seems to be having a positive effect on labour demand in the survey, despite recent 'questionable' official labour market statistics suggesting otherwise."

The mining sector was the only one with negative conditions, although it recorded an improvement.

However, retail did record a fairly steep fall in conditions.

"The deterioration in retail coincides with big declines in retail price growth, highlighting the competitive and cost pressures facing the industry," Mr Oster added.

Retail is one sector that tends to be hurt by a falling Australian dollar, as it increases the cost of the mainly imported goods that stores sell.

AustraliaPlus

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Business confidence rises despite Brexit, election campaign

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