National Australia Bank monthly survey of business, for October 2024
Business Confidence +5, highest in nearly two years
- prior -2
Business Conditions +7
- prior+7
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Some of the sub indexes:
- sales +1 to +13 (a strong reading)
- profitability steady at +5
- employment intentions -2 to +3
- growth in input costs slowing to 0.9% q/q, from 1.3% in September
- growth in product prices 0.5%, from 0.6%
- growth in labour costs 1.4%, from 1.9%
Comments from the NAB report:
- "Confidence spiked in the month after an extended period of below average reads"
- "While it's just one month this is an encouraging sign alongside a tentative improvement in forward orders."
- "The survey, like other price indicators, continues to suggest an ongoing gradual easing in inflation pressure, but also that there is still some way to go in the moderation"
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A persistently high cash rate, in order to combat sticky inflation, is a headwind for many businesses.
The Reserve Bank of Australia target band for inflation is 2 to 3% (that's an 'in a nutshell' description). The most recent official headline rate is 2.8%, as seen in the pic above. Most analysts expect this to rise once government subsidies, 'cost of living' support, roll off.
