Business confidence showing no ill effects from the government’s ‘tough budget’, rather improving in line with better business conditions (reflecting sales and profits) – albeit conditions remain sub trend. Most industries showed better outcomes but heavy lifting done by surge in construction. Employment and capacity utilisation, however, weakened significantly. The ‘bellwether’ sectors (wholesale, transport) are giving mixed signals, while forward orders suggest little fundamental change in activity. Inflation pressures remain muted. NAB forecasts unchanged with unemployment to reach 6¼% by late 2014. Rates still ... (full story)