Australia January enterprise confidence +four (prior -2)

Nationwide Australia Financial institution enterprise survey, for January 2025:

Enterprise Confidence +four, improved on expectations of decrease rates of interest

• prior -2.zero

Enterprise Situations +three

• prior 6.zero
• gross sales (down four to six) and income (down 6 to -2) declined
• margin pressures, significantly in retail
• Alan Oster, NAB’s chief economist says “Value pressures stay excessive for companies, however they aren’t absolutely passing them on to customers, which is weighing on profitability and general enterprise circumstances”

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The survey offered conflicting indicators on inflation:

• Labour prices accelerated to a quarterly tempo of 1.eight%.
• Buy value development slowed to 1.1%.
• Retail costs rose at a zero.9% quarterly tempo, up from zero.7% in December.

In the meantime, capability utilisation fell to 82.zero% from 82.7%, indicating barely extra slack within the financial system.

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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