Australian business confidence dropped in July, as businesses are still nervous about high rates depressing consumers

August 13, 2024

Australian business confidence index dropped to 1 in July from 3 in June indicating businesses view current situation less positively than month before. The indicator has been hovering around zero level since December 2024 failing to establish any noticeable uptrend.
Elevated interest rates are making credit more expensive for businesses to expand their output. This may lead to the whole economy cooling as a result. Now this prospect is a major concern for police-makers who balancing between the need to ease inflation and the problem not to drive economy into recession and the same time.