Australian Business Confidence 0 (prior 5) & Conditions 22 (prior 25)

National Australia Bank October Business Survey

• Business confidence dropped to zero from 5 in September.
• Business conditions down to 22 from 25 (note that September has been revised lower, to 23)

The confidence measure is a sentiment-based one, conditions is a little more objective.

Sub measures show:

• sales down 6 points in the month to a still-strong +31 reading
• profitability +1 to +22
• employment down 3 to +14
• capacity utilisation 85.8%, just below a record high

NAB remarks on the report:

• Consumers continue to spend despite headwinds from inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term and interest rates, and that run of strength looks to have carried on into October
• Overall, the survey suggests that firms are growing wary of the potential for a slower period ahead, despite ongoing strong demand.
• Strong price growth in October reinforces our expectation that inflation will continue to rise strongly through Q4
• Retail price growth was higher again in October, signalling that goods-side inflation remains a key challenge.