- National Australia Bank business survey
Australia May 2025 business conditions index falls to 0 vs +2 in April (long-run average is around +6)
- 0 is a 4.5 year low
Business confidence index rises to +2
- vs -1 in April
Some of the sub measures:
- sales index +5 in May vs. +6 in April
- employment index 0 vs 4 in April
- profitability unchanged at -4
NAB chief economist Sally Auld
- “By industry, the persistent weakness in retail business conditions and confidence aligns with the softer-than-expected pick-up in consumption over Q1”
- “Our measures of profitability and trading conditions are notably weaker in retail than other industries”
- ‘Overall, this survey highlights that business conditions remain weak amid ongoing profitability pressures and soft demand, with signs of a further softening in labour demand.’
- “We will watch whether there is a more sustained softening in labour demand, with the employment index easing to below average levels”
This is a weak survey. Weak profitability does not auger well for business investment, both fixed asset and employment.
AUD has fallen, but its alongside all other major FX also falling:
