Australian May 2025 Business confidence +2, prior -1 | Forexlive

Australia May 2025 business conditions index falls to 0 vs +2 in April (long-run average is around +6)

• 0 is a 4.5 year low

Business confidence index rises to +2

• vs -1 in April

Some of the sub measures:

• sales index +5
  in May vs. +6 in April
• employment index 0 vs 4 in April
• profitability unchanged at -4

NAB chief economist Sally Auld

• “By industry, the persistent weakness in retail business
  conditions and confidence aligns with the softer-than-expected
  pick-up in consumption over Q1”
• “Our measures of profitability and trading conditions are
  notably weaker in retail than other industries”
• ‘Overall, this survey highlights that business conditions remain weak amid ongoing profitability pressures and soft demand, with signs of a further softening in labour demand.’
• “We will watch whether there is a more sustained softening
  in labour demand, with the employment index easing to below
  average levels”

—

This is a weak survey. Weak profitability does not auger well for business investment, both fixed asset and employment.

AUD has fallen, but its alongside all other major FX also falling:

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