The December NAB survey has wiped out rate cuts for the time being.
Business conditions increased to +9. Business confidence increased slightly to +3. Employment remained stable at 4, which is roughly around the breakeven rate for unemployment. At 83.2%, capacity utilisation is still high.
Sales, which increased by three points to a historically high +16, were a major factor in the upswing and contributed to more general evidence of a rebound in consumer demand.
Profitability also improved, with the profits index rising three points to +7, while employment held steady at +4.
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Price pressures increased but only slightly. They are far from alarming.
A decent report but not a smoking gun for a February rate hike.
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Cuts are off the table for now.