Yesterday's session brought NAB Business Confidence data. The NAB Monthly Business Survey produced a strong result in March. A jump in both business conditions and confidence this month provides more assurance that the Australian economy is weathering the global challenges well, and is successfully transitioning through the end of the mining boom. Business conditions lifted to their equal highest level since 2008, while improvements are becoming more broad-based across the economy as the recovery gains traction.
“The lift in business conditions to these levels not only suggests that Australia is withstanding the uncertainty offshore, but that the recovery in the non-mining sectors of the economy have in fact stepped up a gear this month” said Mr Alan Oster, NAB Chief Economist. The better business environment (and some soothing of financial market concerns) has helped to lift business confidence as well.
The business confidence index increased 3 points in March (to +6), which is consistent with the long-run average, and an encouraging result given the overall global context.
In the US session Import Prices figures were released. The price index for U.S. imports rose 0.2% in March, the first monthly increase for the index since a 0.1% uptick in June 2015. The March advance was the largest 1-month rise since the index increased 1.1% in May 2015. Despite the upturn, overall import prices remained down over the past year, falling 6.2% from March 2015 to March 2016.
Tomorrow's session will bring China's Trade Balance data. Decline in surplus to 203 billion yuan is anticipated. In the US session Retail Sales and PPI figures are scheduled for a release. Analysts predict 0.3% increase in Retail Sales and 0.1% rise in PPI.
Figures to watch:
China's Trade Balance (Wednesday)
Retail Sales (Friday 14:30)
PPI (Friday 14:30)