Australian businesses gloomy on third qtr-survey

SYDNEY: Australian firms have grown markedly more pessimistic in the face of rising costs, falling equity values and slumping consumer confidence, a survey of businesses showed on Monday.

National Australia Bank's quarterly survey of small, medium and large businesses found the outlook for the third quarter had dimmed substantially.

Its index of business confidence expectations for the third quarter fell 4 points to -8 points. That was 18 points lower on the year, the biggest drop in over a decade.

"A triple whammy of reduced activity/lower customer confidence, rising costs - borrowing, oil and other key purchase costs - and volatile and lower equity markets continue to weigh on the business outlook," said Jeff Oughton, NAB's head of Australian economics.

The sectors hardest hit were transport, residential construction, household goods and car retailers and property services, mainly real estate agents. In contrast, positive expectations for confidence remained in mining and to a lesser extent smaller health professionals, construction services and larger business services.