The 'conditions' measure is more objective than the sentiment-based confidence measure. In that sense this survey shows improvement. The slide in confidence comes after an 11 point jump higher in the previous, October survey.
The background to the November survey is a loosening in COVID-19 restrictions during the month as vax rates climbed.
Business conditions:
- +5 for the subindex for employment, to +11
- sales index + 1 point to +16
- profitability was steady at +8
- rise in capacity utilisation to 83.2%
- forward orders index +14
- retail and producer prices higher
- labour costs were higher
NAB remarks:
- "Overall, these results indicate a strong recovery is underway"
- "There is still scope for things to improve further in coming months, particularly in recreation & personal services which was still in negative territory in November despite many restrictions easing in the month."
- “Notwithstanding the possibility of new disruptions related to the Omicron variant, the economy is well placed to carry this momentum forward over coming months and into 2022.”
