Reported 11 months ago
Australia's business confidence has turned negative with conditions falling below average levels, influenced by high interest rates and a darkening consumer outlook. Business confidence declined by 4 points to -3 in May, after staying at or above zero since November. Business conditions, measuring sales, employment, and profitability, decreased by 1 point to 6, below the long-run average. Despite falls in conditions across consumer-facing industries like retail, recreation, and personal services, capacity utilization remains above average, and cost and price growth measures increased during the month. The Reserve Bank has raised rates 13 times since May 2022 to 4.35%, impacting consumer confidence, leading to Australians being cautious in the face of rising mortgage repayments. The business sentiment, formerly resilient during tightening, is now on a downward trend.
Source: YAHOO