Business conditions hit 4 year low.
NAB is now banking on the Reserve Bank of Australia (RBA) to make another interest rate cut as soon as August, following the results of its monthly business survey, reports ABC News.
The NAB's monthly business survey has indicated that business conditions have reached their lowest levels since May 2009, bringing the bank to believe that the RBA will need to make another cut in August in order to stimulate the non mining economy.
"Softness in China, weaker terms of trade and financial volatility, encourages us to bring our next expected rate cut forward to August," said NAB.
While the long term score for business conditions averages around 5, the recent survey gave a current reading of -8 for business conditions. Overall conditions were the worst for retailers with -28, manufacturers -27 and miners -28.
However business confidence has shown a slight increase which now sits at 0, although still well below trend.
According to NAB's head of Australian economics, Rob Brooker, the survey did also show a few positive signs.
"The areas that are doing better are areas like business services, property and finance," Mr Brooker said.
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