Business sector becomes pessimistic as economy loses momentum

Soaring inflation and 11 interest rate rises have pushed business conditions to their lowest level since early 2022, with a decline in forward orders and below-average confidence painting a gloomy outlook for the business sector.

The decline in the headline figure was driven by a 4-point drop in the trading conditions sub-index, while firm profitability dipped by 2 points.Advertisement Westpac senior economist Andrew Hanlan said the business mood was particularly pessimistic in consumer-facing sectors, with“The flow of forward orders has dried up as the economy slows and lacks momentum – that is in stark contrast to the sustained strength in new orders through October 2021 to October 2022 during the reopening phase,” Mr Hanlan said.

Survey measures of inflation have also eased in recent months, with growth in labour costs and purchase costs both well below the elevated levels reached in mid-to-late 2022.

Brasil Últimas Notícias, Brasil Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

Tight employment market puts heat on small businessSmall business will be included in electricity bill relief measures announced in Tuesday’s federal budget, Treasurer Jim Chalmers confirmed.
Fonte: FinancialReview - 🏆 2. / 90 Consulte Mais informação »

UniSuper invest $1 billion into European mobile towers businessAustralia's fourth biggest superannuation fund, UniSuper – today invested $1 billion to buy a 5 per cent stake in the European mobile towers business Vantage Towers. Vantage Towers is one of the biggest in Europe, with 83,000 sites across 10 countries including Germany, Italy, Spain and the UK.
Fonte: SkyNewsAust - 🏆 7. / 78 Consulte Mais informação »