Roy Morgan has released its business confidence survey for November, with confidence falling to its lowest level since the depths of the pandemic in 2020:
Business Confidence was 85.8 in November, down 4.6pts since October.
The fall in Business Confidence followed the 0.25% increase in the official cash rate (OCR) by the RBA, which sent the OCR to its highest level since December 2011.
Business Confidence has been below the neutral level of 100 for a record ten consecutive months, the longest period in negative territory in the index’s history spanning over a decade.
Businesses are concerned about the Australian economy’s performance, with nearly two-thirds (64%) anticipating “bad times” within the next year and 61% anticipating “bad times” within the next five years.
Business confidence stands at a level 25.5 percentage points below the long-term average of 111.3; although it remains 9.4pts higher than the latest – ANZ-Roy Morgan Consumer Confidence index:
This is also the first time in the history of Roy Morgan’s Business Confidence Index that business confidence has fallen below 90 in all six states:
The crash in both business and consumer confidence are additional marginal indicators of the per capita recession afflicting Australia.
