While there is no survey of expectations for this report, the October data was improved. The National Australia Bank (NAB) business survey revealed a notable increase in business confidence, reaching its highest level since early 2023.
- The business confidence index rose by 7 points to +5, while business conditions remained steady at +7 index points.
The survey highlighted
- a slight uptick in trading conditions, which increased by 1 point to +13
- stable profitability at +5 index points
- employment intentions saw a minor decline, dropping 2 points to +3
Encouragingly, input cost pressures showed signs of easing
- labour cost growth decreased to 1.4% in quarterly equivalent terms, down from 1.9% in September
- purchase cost growth fell to 0.9% from 1.3%
- product price growth also edged down to 0.5% from 0.6%
Gareth Spence, NAB’s Head of Australian Economics, noted in the report that the spike in confidence, following a period of below-average readings, is an encouraging sign, especially alongside a tentative improvement in forward orders.
The Reserve Bank of Australia decision will follow later today: