National Australia Bank monthly survey of business, for October 2024

Business Confidence +5, highest in nearly two years

Business Conditions +7

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Some of the sub indexes:

• sales +1 to +13 (a strong reading)
• profitability steady at +5
• employment intentions -2 to +3
• growth in input costs slowing to 0.9% q/q, from 1.3% in September
• growth in product prices 0.5%, from 0.6%
• growth in labour costs 1.4%, from 1.9%

Comments from the NAB report:

• “Confidence spiked in the month after an extended period of below average reads”
• “While it’s just one month this is an encouraging sign alongside a tentative improvement in forward orders.”
• “The survey, like other price indicators, continues to suggest an ongoing gradual easing in inflation pressure, but also that there is still some way to go in the moderation”

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A persistently high cash rate, in order to combat sticky inflation, is a headwind for many businesses.