Australian business confidence rises in August

Australian business confidence rose for a second time in August as sales remained strong despite high interest rates and inflation.

National Australia Bank (NAB) reported that its Australian business conditions index rose 1 point to +20 in August, well above the long-term average. The business confidence index rose 2 points to +10 in August, above the long-term average.

NAB’s chief economist said, “Overall, the survey results indicate that Demand remained strong in August and we still expect higher inflation and interest rates to start to affect the kitchen budget more. However, it appears that so far this situation has not happened.”

Rising inflation has prompted the Reserve Bank of Australia (RBA) to raise its key interest rate five times since the beginning of May, by a total of 2.25% to 2.35%, suggesting that the rate will be raised again.

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