Australian business confidence falls to -4 (prior 0)

News

National Australia Bank survey, confidence (at -4) and conditions (at 20) both dropped ( 0 and 22 priors, respectively).

  • confidence negative for the first time since December 2021

Some of the sub-indexes:

  • sales -2 to a still very strong +28 (resilience in demand citied for this)
  • capacity utilisation just off a record high at 85.2%
  • profitability -1 to +20
  • employment -1 to +13 (still historically high)

Inflation indicators still high:

  • Labour costs up a little in the month
  • both producer costs and retail prices higher

The ‘conditions’ measure is the more objective of the two, the ‘confidence’ measure is a reflection of (subjective) sentiment.

NAB remarks:

  • “Overall, the survey suggests the economy powered through November with consumers still spending in the run-up to Christmas” “However, firms have become increasingly pessimistic about the future as they look ahead to a slowing global economy and a period of weaker consumption as inflation and higher rates weigh on households.”

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