Business Confidence Plummets Amidst Economic Challenges
Business Confidence Plummets Amidst Economic Challenges
3
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
In an unexpected turn of events, business confidence has experienced a substantial decline this November, marking a significant shift from last month's brief positive outlook, according to the National Australia Bank (NAB).
A recent NAB survey revealed a notable drop in business confidence by eight points, taking it to minus three, accompanied by a five-point decline in business conditions.
The downturn is particularly pronounced in the manufacturing and retail sectors, which showed the weakest performance in goods production and distribution. Conversely, the services sectors are holding strong, indicating disparities in economic resilience within the different sectors. NAB's findings further revealed that all sub-components of business conditions are now at or below average levels.
Geographically, South Australia and Victoria experienced the weakest conditions, while Queensland was the sole state to exhibit an improvement. "Confidence fell sharply in November and is now back below average," stated NAB Chief Economist Alan Oster. He acknowledged the persistent trend of below-average business confidence despite last month's optimistic observations.
The survey's negative sentiment is echoed in declining forward orders from the mining and retail industries, sectors that have lagged behind the long-term average throughout most of the year. However, service sectors such as recreation, finance, and property services continue to perform well above their counterparts.
On a positive note, capacity utilisation remains robust at 82.4%, surpassing the long-term average. Capital expenditure has also increased by 10 points, indicating sustained investment activity. Additionally, consumer prices show potential disinflationary trends, with retail prices taking a 0.6% dip and recreation and personal services seeing a 0.7% decline. Overall, output price growth held stable at a quarterly 0.6%.
Mr. Oster highlighted the mixed economic signals: "Overall, the survey points to ongoing soft growth in Q4 though with capacity utilisation unchanged at an above-average level. It will likely take more time for price pressures to fully normalise."
These developments emerge in the context of NAB's Australian housing market analysis, which, alongside data from CoreLogic, alludes to a correction phase for the real estate market as December progresses.
The report indicated that house values in four out of eight capitals decreased, led by Melbourne. Despite 22 consecutive months of growth previously, November's overall house price increase stirred faintly at just 0.1%. Notably, Perth stood out with a 1.1% increase, reflecting annual growth of 3% for the quarter, albeit much lower than earlier figures.
Highlights revealed muted growth in Perth, Brisbane, and Adelaide, contrasting with declines in Melbourne, Darwin, and Sydney where high-end properties faced more significant depreciations. A persistent increment in regional housing, recording a 1.1% rise over three months, shows diversification in house price trends nationally.
Factors such as rising inventory levels, particularly visible in Sydney and Melbourne, underscore shifting dynamics; listings across major cities have surged 16% this quarter. This is met with a decline in home sales, particularly felt in Sydney.
With rental prices continuing their climb-albeit at a slower pace-Tim Lawless of CoreLogic states, "Housing markets are likely to be arriving in 2025 on relatively weaker footing, with value growth losing steam...advertised stock levels rising, unaffordability at record highs, and demand no longer keeping pace with the flow of new listings." Until interest rates fall, pressure on housing trends appears unlikely to ease significantly.
Published:Tuesday, 10th Dec 2024 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
In a remarkable development for Australia's recreational vehicle (RV) industry, Snowy River Caravans has secured the top position in both the Imported and RVMAP categories for the third quarter of 2025. This achievement signifies a notable shift in consumer preferences and market dynamics within the sector. - read more
Jayco, a prominent name in Australia's recreational vehicle (RV) industry, has successfully maintained its leading position in the market during the second quarter of 2025. Despite experiencing a slight decline, the brand continues to hold a substantial share, reflecting its enduring appeal among Australian consumers. - read more
The Australian recreational vehicle (RV) industry is experiencing a significant shift, marked by an increase in caravan imports coupled with a decline in local production. This trend raises important considerations for domestic manufacturers and consumers alike. - read more
In an exciting development for Australian caravan enthusiasts, Crusader Caravans has announced a strategic partnership with BIG4 Holiday Parks. This collaboration aims to provide new caravan owners with exclusive benefits, enriching their travel experiences across the country. - read more
Recent data indicates a notable increase in occupancy rates across Australian caravan parks, showcasing the sector's resilience in the face of economic challenges. In October 2025, cabin occupancy nationwide rose to 69%, a four-point increase from the previous year. Powered sites saw a three-point rise to 52%, while unpowered sites reached 22% occupancy. - read more
Caravan travel offers a unique opportunity to explore the great outdoors, providing the freedom and flexibility to discover some of the most breathtaking landscapes Australia has to offer. From the golden beaches of Queensland to the rugged beauty of the Outback, caravanning lets you take the road less travelled and create unforgettable memories. - read more
As any caravan owner will tell you, taking your mobile home on the road is an adventure like no other. But what happens when you are not exploring the great outdoors? Proper storage plays a critical role in the care and longevity of your caravan. - read more
In recent years, the call of the open road has been answered by more and more Australians through the timeless tradition of caravanning. Sparked by the pursuit of freedom and the comfort of having a home on wheels, the caravan lifestyle has seen a resurgence in popularity. This phenomenon isn't just about being on holiday; it's about the independence and flexibility that comes with owning a caravan. - read more
Welcome to your first step towards financial liberation in the world of caravanning! Managing your caravan finance effectively is more than just making regular payments; it's a path to freedom on wheels. Understanding the nuances of caravan finance can unlock the door to early repayment and savings in interest, benefiting you in the long run. - read more
Caravan loans are financial products designed to help individuals purchase caravans without having to pay the full amount upfront. These loans make it easier for aspiring caravan owners to break down the cost into manageable installments, making caravan ownership more accessible. - read more
Start Here
Get a free caravan finance eligibility assessment and compare options
tailored specifically to your circumstances.
Knowledgebase
Consumer Credit Code: An act of Parliament that governs the relationship that exists between borrowers and lenders.
