3 charts that suggest Australian unemployment and economic growth will improve further in 2018

Of all the business indicators in Australia, few are as influential as the National Australia Bank’s (NAB) Business Confidence survey, especially the quarterly report which is larger and more in depth.

It was released last week, and if the details on labour market conditions are anything to go by, it points to the likelihood that wage pressures and economic growth may start to accelerate to levels that will allow the Reserve Bank of Australia (RBA) to begin lifting interest rates, according to Macquarie Bank.

“Our advice is ignore [the] NAB business survey at your peril,” the bank’s economics team wrote in a release late last week.

“Over the second half of 2017 firms reported a sharp increase in the availability of labour being a constraint on output… [with] 17% of firms at the end of 2017 reported that the availability of labour was a significant constraint on output, the highest share since September 2008.”

This chart from Macquarie shows the percentage of firms in the NAB survey that found it more difficult to find workers over the past 6 months, overlaid against movements in Australia’s unemployment rate.

Originally Published by Business Insider, continue reading here