A survey shows that business conditions in Australia worsened in June, and the job outlook has dimmed.

A survey showed on Tuesday that Australian business conditions worsened in June, with the employment outlook taking a notable hit, although firms were a bit more confident as cost pressures eased. The National Australia Bank (NAB) survey revealed that its index of business conditions fell by 2 points to +4, dropping below its long-term average. Conversely, the business confidence index jumped 6 points to +4, with gains reported in manufacturing and wholesale sectors. Within the conditions measure, the employment index dropped 6 points to 0, while sales remained broadly flat.

“Although it’s only one month’s data, the employment index is now below its long-term average and might indicate that the broader economic slowdown is increasingly affecting labor demand,” said Gareth Spence, head of Australian economics at NAB.

The survey also noted a welcome cooling in price pressures, with both labor and purchase costs slowing. Product price inflation eased to a quarterly rate of just 0.7%, while retail prices remained steady at 1.5%.

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