Australia Business Conditions Remain Stable; Confidence Improves

(RTTNews) - Australia's business conditions remained unchanged in the fourth quarter, while confidence improved moderately, data from the National Australia Bank showed on Thursday.

The business conditions index held steady at 3 in the fourth quarter. Trading and profitability decreased by one point each, while employment remained stable.

At the same time, the business confidence index rose to -4 in the fourth quarter from -7 in the third quarter. Despite the improvement, confidence remained in negative territory.

Leading indicators of the survey were more mixed. Expected business conditions for the coming twelve months and capex plans in the next twelve months improved on prospects of rate cuts, recovering consumer demand and easing costs growth. Medium term inflation expectations improved in the fourth quarter with a sharp fall in the share of businesses forecasting medium term inflation of 3.5 percent or more.

Labor costs and purchase costs both eased in the fourth quarter though wage costs remained the top issue affecting business confidence.

NAB said uncertainty around the extent of the consumer recovery and the timing of interest rate reductions may continue to weigh on both business conditions and confidence in 2025.