November Sees Softening in Australian Business Conditions Amidst Capacity Challenges

Despite the softer activity, many firms reported limited spare capacity, reinforcing concerns about inflationary pressures. Capacity utilization rose to 83.6%, the highest in 18 months, while input and retail price growth remained elevated. NAB's Chief Economist Sally Auld noted that ongoing capacity constraints could lead to additional pressure on prices if economic growth accelerates further.

For business owners, these findings underscore the importance of strategic planning to navigate potential economic fluctuations and capacity challenges. Maintaining operational efficiency and monitoring market trends will be crucial in adapting to evolving business conditions.