Australia business activity booms in July, costs surge [Reuters]
NATL AUSTRALIA BK S/ADR (NABZY)
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Source: Reuters
of rising interest rates and high inflation, though firms also reported record costs amid supply constraints. Tuesday's survey from National Australia Bank Ltd (NAB) (NAB.AX) showed its index of business conditions climbed 6 points to +20 in July, well above its long-run average. Its measure of confidence bounced 5 points to +7, reversing June's decline and leaving it just above the long-run average. "The strength in conditions remained broad-based across states and industries, with a notable pickup in the construction sector," said NAB group chief economist Alan Oster. "Overall, the survey suggests that despite global and domestic economic headwinds, demand has remained strong – and inflationary pressure continues to build suggesting that inflation is yet to peak." The survey's measure of purchase costs climbed to a record high of 5.4%, while labour costs rose 4.6% at a quarterly pace. Growth in retail prices picked up to 3.3%, with product prices up 2.7%. Surging inflati
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