CANBERRA: Tuesday’s survey from National Australia Bank (NAB.AX) showed its index of business conditions fell 6 points to +14 in March, though that was still well above the long-run average of +5.5.
The survey was conducted shortly after U.S. President Donald Trump announced tariffs on at least $50 billion of imports from China, Australia’s largest single export market.
NAB group chief economist Alan Oster noted the survey’s measures of conditions were still equal to or above their long run averages for every industry sector.
“The strength in business conditions and leading indicators are consistent with stronger economic growth in coming quarters and the employment index is pointing to strong jobs growth which should reduce unemployment,” said Oster.
The pullback in the survey’s main measure will be a disappointment to the Reserve Bank of Australia (RBA) which has repeatedly cited strength in business conditions as a reason for optimism on the economic outlook.
