NAB’s July survey: business conditions index up 1 point to 4, still below the
long-run level of 7. Confidence stuck at -6, well below February’s pre-Middle
East hostilities level. Firms report persistent cost pressures and weak demand;
NAB says ongoing uncertainty is weighing on confidence and keeping margins under
pressure. Transport and utilities saw the largest pass-through of higher input
costs as fuel price swings lifted final prices and procurement costs. The
Reserve Bank of Australia meets Tuesday; markets expect it to hold the cash rate
at 4.35% after three hikes this year.
