The National Australia Bank’s monthly business survey for June has reiterated the positive results the retail industry is seeing from the RBA’s rate cuts.
Just as it was reported by the Westpac Melbourne Institute Index of Consumer Sentiment, the NAB has also said the rate cuts are finally having positive results on the retail sector.
The survey said that overall business conditions have improved slightly, despite activity still remaining relatively soft. More specifically, retail conditions picked up modestly, “with recent rate cuts as well as government payments probably having an effect”. However, in comparison to other sectors performance of the retail sector as well as manufacturing, construction and wholesale still remain “worryingly weak”.
At the same time, retail prices continue to fall marginally, suggesting further discounting.