AUD Dives After Business Confidence Slump
Australian business conditions have suffered their steepest monthly decline since the global financial crisis, slumping 82% from +11 in November to +2 in December. The news has sent the Aussie dollar diving over 20 points to 71.42 US cents.
Lead by retail, the “broad-based” slump in confidence affected almost every Australian state and industry.
NAB Chief Economist, Alan Oster, claims retail conditions remain “particularly weak”, with ongoing deterioration forecast [trend terms].
“Business conditions fell sharply in December, and while caution should be taken when interpreting data around the Christmas/New Year period, this outcome continues the downward trend in conditions over the second half of 2018,” remarks Oster.
The downwards trend spanning the second half of last year saw employment slump 56% to +4 index points, and trading conditions slip 53% to +7.
The profitability sub-index plummeted 8 points to zero.
Mr Oster claims monitoring future conditions and orders track will be critical for determining 2019 retail outlook.