NAB’s monthly business conditions survey printed a 5 points fall below their long-term average to plus 3 points in January.
This is still a rebound from the minus 12 delivered in December at the peak of worries over the omicron variant of COVID-19.
“Confidence fell sharply in December as the Omicron variant began to spread, but rebounded in January, reflecting that the outbreak looks to have peaked quickly and lockdowns have been avoided,” said Alan Oster, NAB’s chief economist. “That positive outlook is underpinned by forward orders, which held steady through January despite the disruption.”
Ernst & Young senior economist Johnathan McMenamin also viewed January’s result as a small positive.
“Australian businesses have shown themselves to be incredibly resilient throughout this pandemic, and their improving confidence suggests that the omicron wave is yet another challenge they can absorb,” said Mr McMenamin. “The focus now for businesses is how they navigate a new set problems, which they haven’t faced in more than a decade – low and falling unemployment, increasing capacity utilisation, rising cost pressures and, eventually, higher interest rates.”
Last Friday, NAB’s December quarter Residential Property Survey forecast national prices to fall 11.4 per cent in Sydney and Melbourne in 2023. On average, it tipped national dwelling prices to fall 9.3 per cent in 2023.
Be the first to comment