(Reuters) – SYDNEY, July 13 (Reuters) – As a result of coronavirus lockdowns in New South Wales and Victoria, a measure of Australian business conditions dipped from record highs in June, albeit activity remained good in historical measures. After increasing 5 points in a very strong May survey, National Australia Bank’s (NAB.AX) index of business conditions fell 12 points to +24 in June. The survey’s confidence index fell 9 points to +11, yet it was still higher above the long-term average. “The reduction in conditions was widespread across states, but was driven by a considerable drop in Victoria following the lockdown, which began in late May but was gradually relaxed throughout June,” said NAB chief economist Alan Oster. As the lockdown in Victoria ended, a new one began in Greater Sydney, which is expected to last many weeks. “The hope is that, like with prior shutdowns, firms will reopen,” Oster added. “While there is less government support available, business conditions have been favorable, and the recovery is expected to continue.” Trading, or sales, dropped 10 points to a still-high +35 in June, while profitability dropped 13 points to +25 and employment declined 8 points to +17. Capacity utilization fell to 83.9 percent, while future orders fell 9 points to +15 percent. All industries except mining and manufacturing saw a drop in confidence, with recreation and personal services seeing a sharp 27-point drop as businesses closed. The NAB poll ran from June 18 to 30, coinciding with the start of the Sydney lockdown. Wayne Cole contributed reporting, and Jacqueline Wong edited the piece. The Thomson Reuters Trust Principles are our standards./n
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