Wage costs worry businesses, inflation still elevated: NAB
Make us a preferred source
Make us a preferred source on Google
The news: Rising wage costs remain the biggest concern of Australian businesses, with many still struggling with labour shortages, according to NAB's quarterly business confidence survey. Price inflation remains elevated, NAB economists said.
The numbers: Labour cost growth rose to 1.8% in the third quarter, with wage costs causing concern for 68% of surveyed businesses. Labour availability is still an issue for 40% of firms. Buit fewer companies are expecting significant wage pressures in the next six months, indicating they may have peaked, NAB economists said. The survey's inflation indicators remain elevated, with final prices rising 0.9% in the third quarter compared to 0.7% in Q2.
The context: NAB chief economist Alan Oster said Q3's sustained elevated price growth underscored the bank's expectation of a relatively strong inflation print of 1.1% when quarterly CPI figures are released next week.
What they said: "Consistent with our monthly business survey, today’s release shows business conditions remained robust in Q3," Oster said in a statement.
"Confidence also improved a little, as did forward orders, and expectations for business conditions remain steady."
The source: NAB Survey
