Australian Business Confidence Drops on Middle East Uncertainty

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Or sign-in if you have an account.(Bloomberg) — Australian business confidence snapped three months of gains as uncertainty over the Middle East conflict and persistent energy price strength weighed on the outlook.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountBusiness confidence slid 1 point to minus-6 points in July, a National Australia Bank Ltd. survey showed on Tuesday. Conditions — a measure of profitability, sales and employment — advanced 1 point to 4 points. “Despite improved outcomes relative to those seen at the peak of the impact of the Middle East crisis, the survey shows that the elevated uncertainty has continued to weigh on business confidence,” NAB said. “Cost pressures amid a softer forward demand outlook suggest continued pressure on margins.”The result comes as the Reserve Bank is expected to stand pat today after raising interest rates at its first three meetings of the year. The RBA is trying to rein in stubbornly strong inflation and began tightening policy even before the US attack on Iran unleashed a global energy shock.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againNAB pointed out that cost pressures “clearly remain an issue for business; labor cost growth, which was not affected by the outbreak of the Middle East conflict, has now risen to its highest level since January 2025, while purchase cost and product prices growth are at or above their pre-conflict levels.” Capacity utilization rose 0.9 percentage point to 83%, driven mainly by increases in the finance, business and property and wholesale industriesBoth the forward orders and capex measures remained weak in JulyPurchase cost growth rose 0.2 point, partially unwinding the easing seen in JuneLabor costs growth rose a further 0.5 point to 2.2% in quarterly terms, likely due to the minimum wage decision which took effect on July 1“Overall, the business survey shows that while most survey indicators have largely normalized since the beginning of the Middle East conflict there remains a soft underbelly to the survey’s data,” NAB said.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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