Business confidence improved marginally in July, yet conditions continue to be challenging for residential construction companies, the most recent ANZ Business Outlook survey has revealed.
According to ANZ, the proportion of those anticipating improved business conditions increased by two points, reaching 48%.
Businesses anticipated their own activity to remain unchanged at 41%.
However, ANZ chief economist Sharon Zollner stated that the survey continued to indicate a highly uneven economic recovery.
“We’re still seeing a bounce back from the sharp fall in April, caused, it appears, by Trump’s tariff announcements. It’s been an incomplete bounce back, but generally we’re seeing the forward-looking indicators trend higher.”
Zollner said the most positive aspect of the survey was that firms’ inflation expectations had moderated, with fewer anticipating increased costs or planning to raise prices.
The survey revealed that firms look forward to a modest improvement in profits, yet hiring expectations continued to decline, especially in the retail sector, which was losing jobs at an accelerated pace.
Zollner noted that residential construction was weaker, and the sector seems to have given up hope for a recovery this year.
She said the survey underscores the uneven nature of the recovery, with more Reserve Bank rate cuts expected than previously forecasted.
“This will pave the way for more easing and enable them to backstop the recovery, which is a bit stop-start.”