December business confidence -12

  • prior 12
  • collapses 24 points to a low lower than its trough during the Delta outbreak earlier in 2021

December business conditions +8

  • prior 12

Some of the

Sub indicators:

  • sales held at +14
  • profitability up a point to +10
  • employment dropped 9 points to +2


  • purchase costs to 2.8% in quarterly terms, the highest since 2008
  • growth in final product prices to 1.5%
  • retail prices +2% q/q

Dismal confidence result. A rise in coronavirus cases and subsequent restrictions, having a severe impact on the ability to staff enterprises, playing a role.

NAB comments:

  • Employment drop ... "despite strong jobs growth reported in official data, reflecting the complexity of the labour market situation as businesses faced growing worker shortages and the prospect of a 'shadow lockdown' through the summer,"
  • "With significant disruption to supply chains and labour markets, price pressures are to be expected and the key question will be how quickly, if at all, these pressures abate over coming months,"