Australian business confidence has taken a dive since the start of the Middle East conflict, with data showing that its decline is outpacing the conflict’s real-world impact.
The National Australia Bank (NAB) business confidence survey – with more than a quarter-century of findings – found a 29-point decline in business confidence across March, its second-largest drop on record.
NAB said it is a similar decline to that of the Covid pandemic and the global financial crisis. Across the same period, NAB’s data on business conditions showed just a one-point drop.
Retail and manufacturing businesses are facing the weakest business conditions, while finance, property, and business services remain the most favourable.
Further research conducted by Westpac found a similar story occurring in consumer confidence levels, which have already fallen by 12.5 per cent in April. Westpac said this, too, is a return to the lows of the global financial crisis.
This article was first published on Inside Small Business.
