Australia Business Confidence

The NAB business confidence index in Australia was up 2 points to 10 in August 2022, continuing to rebound from the June low, amid easing concerns over the impact of high-interest rates. Sentiment was largely steady or improving for most sectors except construction. Meantime, business conditions edged higher (20 vs 19 in July), staying above average, with sales rising further (30 vs 26) while employment (16 vs 18) and profitability (16 vs 18) were still strong. Capacity utilization stayed at a very high level at 86.3% while forward orders rose (13 vs 11). Conditions remain strong across the states and in most industries. Meantime, cost indicators eased from the records set in July but remained elevated. “Overall, the survey indicates that demand remained strong,” said NAB Group Chief Economist Alan Oster. “We continue to expect that inflation and rising interest rates will eventually begin to weigh on the household budget. So far, however, it appears this dynamic is yet to take hold.”