Australian business activity fell to its lowest since the pandemic in November as tough conditions hit manufacturing and retail. NAB’s survey showed declines in sales, profitability, and employment intentions, while confidence turned negative amid ongoing economic pressures.
Australian business activity slid to its lowest level since the pandemic in November, as confidence worsened amid tough trading conditions in the manufacturing and retail sectors.
The survey from National Australia Bank (NAB) showed its index of business conditions dropped 5 points to +2 in November, its weakest reading since late 2020. The more volatile confidence index sank to -3, more than reversing October's jump to +5. Sales slowed a sharp 8 points to +5 in the month, while profitability fell 6 points to -1, and employment intentions dipped 1 point to +2.
"While we were optimistic last month, it appears the trend of well below-average confidence remains intact," said Alan Oster, chief economist at NAB. "Conditions in the goods sector remain weak," he added. "Interestingly, conditions in the services sectors – recreation & personal services and finance, business & property services – continue to track at a higher rate." Activity fell across all industries, with retail and manufacturing reporting the worst conditions.
The disappointing figures suggest the economy has not picked up after a very soft third quarter, when household consumption struggled in the face of high borrowing costs.
The Reserve Bank of Australia wraps up its December policy meeting later on Tuesday and is widely expected to hold rates at 4.35%, where they have been for the past year. Measures of cost pressures in the NAB survey were mostly steady in November, though retail prices slowed to a quarterly pace of 0.6%, from 1.1% in October.
Growth in input costs ticked up to 1.1%, while labour costs held at 1.4%. The official measure of consumer price inflation had slowed sharply to 2.8% in the September quarter, though much of that was due to temporary government rebates on electricity bills.
A Kyiv-Warsaw train was struck near the Polish border, Ukraine's state railway firm said on Sunday. No passengers were injured. Ukrai...
Maritime trackers received new reports of an attack on a ship in the Strait of Hormuz on Sunday, according to the ...
Indonesian rescuers are searching for 130 people after a passenger ship carrying 243 people sank in the Java Sea following bad weather, while 113 p...
Maritime trackers received new reports of an attack on a ship in the Strait of Hormuz on Sunday, according to the UK Maritime Trade Operations (UKMTO), adding to concerns about energy supplies after Saudi Arabia shut down a vital oil pipeline on Saturday.
A Kyiv-Warsaw train was struck near the Polish border, Ukraine's state railway firm said on Sunday. No passengers were injured. Ukrainian Railways said that the country's railways were facing systematic attacks for a second day and warned of widespread delays.
Dubai’s property market has spent years climbing. Now, for the first time since 2021, prices are moving in the opposite direction.
Saudi Arabia has temporarily shut down its 1,200-kilometre East-West oil pipeline after it was hit by a drone attack, with Riyadh and Baghdad saying the strike originated from Iraq.
Swedes vote in an election on Sunday (13 September) that could see the far-right enter government for the first time if the country's right-wing parties can form a majority.
Volkswagen’s supervisory board has approved a major overhaul aimed at cutting 100,000 jobs by 2030 as the German carmaker battles weaker sales, falling profits and intensifying global competition.
Chinese Premier Li Qiang has called on American companies to expand their presence in China and pledged that Beijing would address their "reasonable concerns," as China looks to stabilise trade ties with Washington ahead of President Xi Jinping's planned visit to the U.S. later this month
Apple is entering a new era as Tim Cook steps down as chief executive after 15 years at the helm, handing the technology giant's leadership to longtime executive John Ternus.
Volkswagen is heading towards a decisive showdown with labour representatives as Germany's largest carmaker weighs sweeping restructuring measures that could lead to factory closures and tens of thousands of job losses.
Online fast-fashion retailer Shein is seeking to raise up to $1.77 billion in a Hong Kong IPO after its valuation fell around 70 per cent from its private-market peak four years ago.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment