Australia Business Confidence

The NAB business confidence index in Australia sank to -12 in December 2021 from 12 a month earlier, falling below the level seen during the Delta wave. This was the first negative reading since August and the lowest print since July 2020, amid mounting fears over the rapid spread of the Omicron strain. Sentiment fell in all industries other than mining, with the largest drop in recreation, transport, and wholesale. Meantime, business conditions eased while staying above the long-run average, amid a sharp drop in employment (2 vs 11 in November), with sales (14 vs 14) and profitability holding up (10 vs 9). Conditions fell in wholesale, and finance, business & property. Capacity utilization was down to 80.6% from 83.2% in November, amid a fall in forward orders and a slight rise in capex. "The survey results are consistent with an economy that’s starting to slow, with some similarities to the data when NSW and Victoria were first entering lockdown,” said NAB Chief Economist Alan Oster.