Main points from NAB’s assessment of the survey:

• shows a significant deterioration in both current conditions as well as expected outcomes for activity, capex and employment going forward
• Current conditions lowest read since the early 1990s
• weakening was driven by sharp declines across all three sub-indexes and was broad-based across industries
• decline in confidence was more muted, likely reflecting survey timing, with activity starting to recover with the removal of restrictions and easing in lockdowns
• The impact of shutdowns is evident in the record decline in capacity utilisation which was also at its weakest level since the last recession. Unsurprisingly given the massive hit to conditions and capacity utilisation, expectations for capex and employment have declined very sharply at both the 3- and 12-month horizons
• While we know that conditions and confidence saw a rebound late in the quarter, the level of activity remains weak and confidence may remain fragile. These factors pose a risk to a rebound in hiring and investment intentions going forward and warrant close watching. These risks also warrant ongoing government support for a period while the economy recovers from the largest shock since the 1930s.