Fashion
Australian business confidence plunges in March amid uncertainty: NAB
The March survey showed business confidence dropped 29 points to -29 index points, marking one of the steepest monthly declines on record, with similar falls previously seen only during the Global Financial Crisis and the onset of COVID-19, NAB said in a press release.
Despite the sharp fall in sentiment, business conditions eased only marginally, slipping by 1 point to 6 index points, indicating that economic activity has yet to fully reflect the impact of the external shock.
Australian business confidence plunged in March, falling 29 points to -29, while business conditions remained relatively stable, according to NAB.
Despite strong capacity utilisation, forward orders and capital expenditure weakened, signalling rising uncertainty.
Cost pressures intensified, with purchase costs doubling.
While some regions saw improved conditions, confidence declined nationwide.
The divergence suggests that while businesses are increasingly cautious about the outlook, operational momentum has remained intact so far. Capacity utilisation edged up to 83.1 per cent, staying well above its long-run average, with most industries continuing to operate at elevated levels.
However, forward-looking indicators signalled emerging weakness. Forward orders fell into negative territory, erasing gains made earlier in 2026, while capital expenditure also declined, reflecting rising uncertainty among businesses.
The impact of the geopolitical situation was more pronounced on costs, with purchase cost growth doubling to 3 per cent on a quarterly basis. Product price growth also increased, while labour cost growth remained steady.
Sector-wise, the decline in conditions was broad-based, with transport and utilities. Regionally, conditions improved in some areas such as Western Australia and South Australia, but confidence fell across all regions, highlighting widespread concern.
NAB noted that while the economy entered this period with solid momentum, the sharp deterioration in confidence underscores growing risks to the outlook as geopolitical tensions continue to weigh on business sentiment and future activity.
Fibre2Fashion News Desk (SG)