| Actual | Previous | Revised | |
|---|---|---|---|
| Business Conditions Index | 9 | 13 | |
| Business Confidence Index | -9 | -2 | -3 |
Highlights
The NAB business survey for Australia showed a deterioration in both business conditions and business confidence in November after officials at the Reserve Bank of Australia increased policy rates early that month. A separate survey providing more up-to-date consumer confidence data showed consumer sentiment improved at the start of December, coinciding with the RBA's decision to leave policy rates on hold.
The NAB survey's business conditions index fell from 13 in October to 9 in November, its lowest level since early 2022. Respondents reported weaker trading conditions, forward orders, and profitability but steady employment. The survey also showed stronger price pressures, with its measure of quarterly change in labour costs, purchase costs, and retail prices all increasing at a faster pace.
The survey's business confidence index dropped sharply from minus 3 to minus 9, its lowest level since late 2021. Apart from the pandemic period, the survey shows business confidence is now at its weakest since 2012. This weakness was broad-based across sectors but particularly pronounced in the retail sector, with the survey noting the impact of the latest tightening of policy by the RBA.
The NAB survey's business conditions index fell from 13 in October to 9 in November, its lowest level since early 2022. Respondents reported weaker trading conditions, forward orders, and profitability but steady employment. The survey also showed stronger price pressures, with its measure of quarterly change in labour costs, purchase costs, and retail prices all increasing at a faster pace.
The survey's business confidence index dropped sharply from minus 3 to minus 9, its lowest level since late 2021. Apart from the pandemic period, the survey shows business confidence is now at its weakest since 2012. This weakness was broad-based across sectors but particularly pronounced in the retail sector, with the survey noting the impact of the latest tightening of policy by the RBA.
Definition
The National Australia Bank (NAB) Business Survey is based on a survey of around 500 firms across the non-farm business sector on their assessment of current business conditions and their sentiment about the outlook. The survey's business conditions index covers trading, profitability, employment, forward orders, stocks, and exports, with respondents also providing responses on changes in costs and selling prices. The survey is conducted in the second half of each month.
Description
The survey of business conditions and confidence offers timely updates on how Australian companies are performing and reacting to unfolding events including news about the overall economy and policy developments. as well as moves in the stock market and changes in interest rates. Investors can use the data to help forecast economic activity and better understand how business conditions and expectations affect sales, employment, investment and other economic outcomes.
