January 28, 2025 at 12:30AM
National Australia Bank business survey, for December 2024.
Business Confidence -2
prior -3.0
Business Conditions 6.0
prior 2.0
Sales increased 3 points to +9, profitability rose 4 points to +4, and the employment index gained 1 point to +4.
Conditions improved across most industries, except for transport and utilities, construction, and wholesale.
NAB cite:
supported by increased Christmas demand, particularly benefiting the struggling retail sector
business confidence remained weak due to rising costs
According to NAB Chief Economist Alan Oster, service sectors remained the strongest, and retail returned to positive territory for the first time since November 2023.
The survey also noted that purchase costs increased slightly, but labour costs slowed to a quarterly pace of 1.4%, despite a strong job market. Oster suggested that the softening of wage pressures aligns with improving employment conditions.
AUD was slammed earlier on Trump and Bessent’s tariff comments:
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Background to this:
Between July and November 2024, the National Australia Bank (NAB) Business Survey reported fluctuations in business confidence and conditions across Australia:
October 2024 had a brief resurgence in confidence:
Business Confidence: Experienced a notable increase, reaching +5 index points, the highest level since early 2023. This rise was observed across most industries, except for construction and retail.
Business Conditions: Remained stable at +7 index points, with steady profitability and improved sales, although employment intentions saw a slight decrease.
November 2024:
Business Confidence: Fell sharply by 8 points to -3 index points, reversing the gains from October and dropping below the long-term average. The decline was broad-based, with significant decreases in the retail and wholesale sectors.
Business Conditions: Softened, with notable declines across most industries. Goods production and distribution sectors, particularly manufacturing and retail, were the weakest, while services sectors remained relatively stronger.
This article was written by Eamonn Sheridan at www.forexlive.com.