Australian August business confidence -4 vs. prior +1

National Australia Bank monthly survey of business, for August 2024

Business Confidence -4, lowest for the year so far

Business Conditions +3

• prior +6
• conditions to the lowest in 2-1/2 years
• employment index came in at +1, sharply down from +7 in July

Inflation indicators:

• growth in labour costs quarterly rate of +1.7% (from July’s +2.4%)
• purchase costs +1.6% in the quarter (from July’s +1.3%)
• retail prices +1.2% for the three months ending August (+1.0% in July)

National Australia Bank (NAB) comments:

• “suggests the period of very strong private sector
  labour demand seen throughout the post-COVID period may be
  coming to an end”
• “Conditions are now fairly clearly below average compared to
  the history of the survey which reflects the weakness seen in
  the private sector broadly as the economy has slowed.”

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A very poor survey. The Reserve Bank of Australia is holding its cash rate at the highest in 12 years, which is not helping.