Business confidence turned negative for the first time in a year in November, as the prospect of a pull-back in consumer spending and aThe slump in business confidence came despite conditions remaining well above the long-term average.
Costs growth showed little sign of easing. Labour costs growth edged up to 3 per cent in quarterly equivalent terms and purchase costs growth tracked at 3.9 per cent, also up slightly.Price growth measures remained elevated with the overall figure at 2 per cent in quarterly terms. Retail prices growth edged up to 2.9 per cent , suggesting continued inflationary pressure.
“This idea may also be behind a notable recovery in confidence more generally among those respondents who hold a mortgage – up 11.3 per cent in the month, compared to a 3.8 per cent rise for tenants.” ANZ senior economist Catherine Birch said a lift over the past seven days was the first time in the current tightening cycle that confidence had improved after an increase in the policy rate.