NAB specialists and clients from across the bank’s Fund Sponsors, Strategic Investors and Alternative Assets (FSA) business gathered over lunch recently to share career stories and advice on promoting greater diversity and inclusion.
NAB Quarterly ASX 300 Business Survey – September 2011
The ASX 300 Quarterly Business Survey captures the views of the ASX 300 business community and is a key peer comparator for companies. The report shares business and sector insights, and an understanding of economic confidence for the quarter. Business conditions for ASX300 declined further in Q3 – driven by manufacturing – narrowing the gap […]
The ASX 300 Quarterly Business Survey captures the views of the ASX 300 business community and is a key peer comparator for companies. The report shares business and sector insights, and an understanding of economic confidence for the quarter.
Business conditions for ASX300 declined further in Q3 – driven by manufacturing – narrowing the gap to the broader economy; large firm confidence has turned negative and is weaker than average.
- Business conditions for ASX300 firms recorded a net balance of +3 points in September – down from +6 points in our June survey. There is a notable difference between the ASX300 and the broader economy within employment conditions – which ASX300 firms expect to remain negative across the next 12 months.
- The key driver of this weakness has been manufacturing – with conditions in this space (particularly for employment) quite negative. Excluding mfg, business conditions were essentially unchanged at +10 points.
- Business confidence has trended downwards, turning negative in Q3 for both ASX300 firms and the broader economy – with confidence weaker among larger firms. By state, Queensland and Western Australia are the strongest, while Tasmania and New South Wales record the weakest confidence for ASX300 firms.
- Interest rate expectations shifted noticeably between Q2 and Q3 – from almost +0.5 per cent to almost -0.25 per cent. Despite this shift, ASX300 firms expect a considerable deterioration in the borrowing environment, with an increase in the share of firms reporting no borrowing requirements, at 41% – broadly in line with the QBS.
- Demand remains the key constraint on both output and profits for firms in both the ASX300 and the broader economy. For output, availability of suitable labour is also a critical factor.
- Labour cost increases are significant for both the broader economy (+1.1%) and the ASX300 (+0.9%). Large firms reported a limited capacity to pass through to end consumers, with product prices rising by just 0.1%. Over the next quarter, ASX300 firms expect more modest increases in costs, but no increase in end prices.
- The capital expenditure of ASX300 firms continues to significantly outpace the economy average. A net balance of 21 per cent of large firms reported an increase in expenditure – a little softer than in Q2, but well above the 10 per cent recorded in the broader economy. Larger firms are tipped to maintain this trend over then next year.
- By industry, there remains a wide disparity in business conditions – with large Mining strong (+60 points), and large Manufacturing the weakest (-22). ASX300 Manufacturing, Finance, Business & Property Services, Recreational Services and Transport, Utilities & Communication reported weaker conditions than their QBS peers.
- The range in business confidence between industries narrowed in Q3 for ASX300 firms, with the strongest levels recorded in Transport, Utilities & Communications (+12 points) and Mining (+10 points), and the weakest in Recreational Services (-14 points) and Retail (-17 points).
For further analysis download the full report.