Australia May 2025 business conditions index falls to 0 vs +2 in April (long-run average is around +6)
0 is a 4.5 year low
Business confidence index rises to +2
vs -1 in April
Some of the sub measures:
sales index +5
in May vs. +6 in Aprilemployment index 0 vs 4 in Aprilprofitability unchanged at -4
NAB chief economist Sally Auld
“By industry, the persistent weakness in retail business
conditions and confidence aligns with the softer-than-expected
pick-up in consumption over Q1″”Our measures of profitability and trading conditions are
notably weaker in retail than other industries”‘Overall, this survey highlights that business conditions remain weak amid ongoing profitability pressures and soft demand, with signs of a further softening in labour demand.'”We will watch whether there is a more sustained softening
in labour demand, with the employment index easing to below
average levels”
—
This is a weak survey. Weak profitability does not auger well for business investment, both fixed asset and employment.
AUD has fallen, but its alongside all other major FX also falling:
This article was written by Eamonn Sheridan at www.forexlive.com.