Australian business confidence fell four points to minus 13 in National Australia Bank’s September survey, its third consecutive monthly decline. Business conditions remained at minus one, while the employment component reached a five-year low. Capacity use stayed above its long-run average and input costs continued to grow, leaving weak sentiment alongside persistent pressure on production capacity.
Economics & Markets··Midday
Confidence falls for a third month
Australian business confidence fell four points to minus 13 in September in the monthly survey by National Australia Bank, one of the country’s major lenders. Confidence was 22 points lower than a year earlier, amid domestic economic challenges and global uncertainty.[1], [2]
This was the third consecutive monthly decline. The reading stood 18 points below its long-run average and in the bottom five per cent of the survey’s historical observations. NAB associated the weakness with higher interest rates and fuel costs as well as global uncertainty.[1]
Employment component reaches a five-year low
Business conditions held at minus one, seven points below their long-run average. Trading conditions rose one point to plus four and profitability improved three points to minus five. Employment moved in the opposite direction, falling three points to minus one, its lowest level in five years.[1]
Capacity use remains above average
Capacity utilisation slipped two tenths of a percentage point to 82.3 per cent, still about one percentage point above its long-run average. Five of the eight surveyed industries were above average. Purchase costs grew at a quarterly rate of 2.4 per cent, labour costs at 1.7 per cent and final product prices at 0.8 per cent. These rates describe business costs and prices rather than annual consumer inflation.[1]
