Australian business confidence and perceived conditions declined "sharply" in November, reported the National Australia Bank (NAB) on Tuesday, citing its monthly survey.
The national index for business confidence fell to a negative 3 in November from a positive 5 in October, "with solid declines across most industries," said the bank's research arm.
The index for business conditions fell to a positive 2 from a positive 7, with sales, profitability and employment all declining. All business conditions "subcomponents are now at or below average," said NAB.
By industry, conditions in November fell in all industries except construction and mining. Wholesale and manufacturing saw the largest declines, added the NAB.
Summarizing survey results, the NAB said, "The goods production and distribution sectors---particularly manufacturing and retail---are weakest in trend terms, while the services sectors remain significantly stronger."
Australian business cost pressures remained largely unchanged in November. "Price and cost growth indicators were broadly unchanged across the survey," said NAB.
Australia's fourth quarter is likely to be a weak one for enterprises. "Overall, the survey points to ongoing soft growth in Q4," said the NAB.
The NAB survey somewhat resonates with the Reserve Bank of Australia's estimate, also released Tuesday, that the nation's gross domestic product (GDP) in 2024 will expand by a modest 0.8%.
Comments