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
—
Some of the sub indexes:
sales +1 to +13 (a strong reading)profitability steady at +5employment intentions -2 to +3growth in input costs slowing to 0.9% q/q, from 1.3% in Septembergrowth 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”
—
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.
This article was written by Eamonn Sheridan at www.forexlive.com.
