SYDNEY, Dec 9 (Reuters) – A measure of Australian business conditions pulled back in November as sales and profits both eased after a couple of strong months, a survey showed on Tuesday, while many firms still reported limited spare capacity.
The survey from National Australia Bank showed its index of business conditions fell 3 points to +7 in November, coming off its highest level since March 2024. The survey’s volatile measure of business confidence slid 5 points to +1.
The result could point to some cooling in consumer demand after a very strong October, though the lack of spare capacity fits with recent high readings on inflation.
The Reserve Bank of Australia holds its last meeting of the year on Tuesday and is considered certain to hold rates at 3.60%, and likely signal caution on further easing.
“Overall, the survey continues to tell us that businesses are capacity constrained and that if economic growth accelerates further from the current starting point, we may quickly see additional pressure on prices,” said NAB Chief Economist Sally Auld.
The survey’s measure of business sales dropped 6 points to +12 in November, while profitability fell 5 points to +4. Its measure of employment edged up 1 point to +4.
Capacity utilisation ticked up to 83.6%, the highest reading in 18 months. Price indicators in the survey were mostly higher, with growth in purchase costs running at a quarterly rate of 1.3% and retail prices at 0.8%.
(Reporting by Wayne Cole; Editing by Jacqueline Wong)
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