National Australia Bank (ASX:NAB) has released the quarterly business survey for September quarter 2019. According to NAB Group’s Chief Economist, Mr Alan Oster, business confidence saw a sharp fall in Q3 more than reversing the surprising bounce in Q2. The post-election optimism faded away despite very low interest rates followed by the back to back interest rate cuts.
- On an overall basis, the survey fits with NAB’s view of the economy as growth has slowed with a weak consumer and a fall in housing investment while price pressure remains weak;
- The survey suggests that inflationary pressure remains weak, with particularly low growth in retail prices;
- Costs on the input side continue to track at a higher rate suggesting ongoing pressure on margins.