Apparently Australian businesses are enjoying buoyant conditions across almost all industries and confidence levels are above average. According to NAB’s latest monthly business survey of 400 firms in March, its Business Conditions Index rose 5 points to 14 while its Business Confidence Index eased back 1 point to 6, which is the average over the life of the series.
Trading conditions were good, profitability solid, employment conditions improved and spare capacity was reduced. However, there was one sector of Australian business which was the exception to all this good news. ANZ’s Felicity Emmett said the retail sector has been doing it tough and it is likely to continue. “The retail sector, however, continues to struggle, with competition and weak sales continuing to put downward pressure on prices.” February retail sales figures out last week indicated how the pace of growth in retail sales has fallen since a post-GFC peak was reached in 2013/2014 and the NAB survey is another piece of evidence which provide confirmation.