Australia business confidence weakened in June due to rising number of infections in New South Wales and subsequent lockdowns, survey results from the National Australia Bank showed on Tuesday.
The business confidence index dropped to 11 from 20 in May. The decline in confidence was led by declines in NSW and Queensland. Confidence weakened in all industries except mining and manufacturing.
Nonetheless, overall confidence remained around twice its long-run average after strengthening in early 2021, the survey revealed. Business conditions also saw a sharp fall in June, driven by a weaker read for Victoria. The business condition indicator declined sharply to 24 from 36 a month ago.
This month’s survey was conducted between June 18 and 30. The Sydney metropolitan area, as well as a number of other capital cities, had locked down by the end of the field work.
Overall, the survey pointed to a solid outcome in the June quarter for economic activity – and continued to reflect the support of both fiscal and monetary policy, NAB said. The experience of lockdowns to date, is that there is a fairly rapid rebound in activity as restrictions are removed.