June 14, 2023
1 min read

Australia’s business conditions slump 7 points in May

The weakest confidence was seen in the retail industry while mining, manufacturing and transport, and utilities saw modest improvements…reports Asian Lite News

Business conditions in Australia posted a sharp fall of seven points to eight points in May driven by declines in trade, employment, and profitability, according to a survey released by the National Australia Bank Ltd. (NAB) on Tuesday.

The fall in conditions appears to be accelerating but still remains above the long-run average, Xinhua news agency quoted the survey as saying.

All the three sub-components of the business conditions fell in May, of which trading dropped eight points to 14 points, employment down seven points to four points and profitability slid five points to seven points, it said.

Conditions in all the industries saw declines with the biggest pullback seen in transport and utilities, wholesales, and mining industries.

The retail industry remained solid despite a small setback seen in May. The business confidence across industries weakened in May with the index declining four points to minus four points.

The weakest confidence was seen in the retail industry while mining, manufacturing and transport, and utilities saw modest improvements.

Forward orders declined six points to minus five points.

“Confidence fell back into negative territory though has bounced around within the zero to minus four index point range in recent month,” said Alan Oster, chief economist of NAB.

“Our bigger worry is the sharp decline in forward orders in the month.”

The forward orders measure typically leads business conditions and historically has been the best measure of economic activity, said Oster.

“If orders persist at these levels we could well see ongoing sharp falls in business conditions, highlighting the risks around economic growth through the middle of this year,” he noted.

ALSO READ-Kashmiri business magnate in Australia’s top entrepreneurs list 

Previous Story

‘It’s time for a succession plan’

Next Story

President, VP meet to discuss UAE’s development

Latest from -Top News

Ramaphosa gains from US showdown

South African President’s conduct with Trump reminded South Africans of his diplomatic pedigree, and of his importance to the country’s rules-based order South Africa’s President Cyril Ramaphosa and his delegation went to

Armed gangs kill dozens in Nigeria

A local state governor said “scores” of people had been killed in the attacks, which also saw homes and properties destroyed. Northeast Nigeria has been gripped by a deadly wave of violence

Children die as USAID aid cuts snap a lifeline

Trump administration cut more than 90% of USAID’s foreign aid contracts and $60 billion in overall assistance around the world. Programs serving children were hit hard Under the dappled light of a
Go toTop

Don't Miss

India, Australia sign joint guidance to boost cooperation between navies

The document is aligned to the ‘2020 Comprehensive Strategic Partnership’

India, Aus celebrate 75 years of cricket friendship

Prime Ministers Modi and Albanese were greeted with loud cheers