Is Australia having a crisis of business confidence?

The latest findings from National Australia Bank (NAB) suggest that the country's businesses are currently in the midst of a crisis of confidence.

In its most recent Monthly Business Report, NAB finds that the outlook is one of a 'patchwork economy' with overall conditions now slightly worse than the long-term average.

Sub-trend employment growth

"The fall in conditions was driven by all three components (sales, profits and employment), with employment the weakest and now below long run averages – again pointing to sub-trend employment growth," the report states.

However, overall business confidence did in fact jump in the positive direction – from one to two points. It is hoped that the figures represent a Christmas slump – as they include December – and not a more ingrained widespread problem.

As well as looking back, NAB has also released projections for the early part of 2015. Falling oil prices have hurt interests here at home according to the company's Global and Australian Forecasts.

Long-term trends

Construction and mining have been the hardest hit due to this, with lessened prices of iron ore also effecting the latter. 

As is often the case, the economic conditions revolve around cycles and analysts will be watching keenly as to whether the next report from NAB confirms any of less than good news as a long-term trend.

While the report may not make for the most pleasant of reading, it does highlight the need to have only the most productive and efficient staff within the Australian workforce.

Using recruitment software such FastTrack360 can help streamline the process of finding the right people and keeping them happy. With economic conditions far from ideal across Australia at present, there is no better time to implement a productivity solution to better support the interests and potential of any business.

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