Australia's business confidence and business environment both declined in November, but rising capacity utilization increased concerns that the country's economy is getting closer to capacity limits. According to a survey released by the National Australia Bank on Tuesday, the business confidence index fell 5 points to 1 index point in November, taking back some of the gains of the past six months. Meanwhile, the business climate index fell 3 points to 7 index points in November. National Australia Bank's chief economist Sally Olde said that the decline in profitability and operating conditions exceeded the boost brought about by weak employment growth. This weak performance comes at a time when the Australian Federal Reserve is holding a policy meeting. Some economists warned that the central bank may issue tighter guidelines due to concerns about worsening inflation prospects.

Australia's business confidence and business environment both declined in November, but rising capacity utilization increased concerns that the country's economy is getting closer to capacity limits. According to a survey released by the National Australia Bank on Tuesday, the business confidence index fell 5 points to 1 index point in November, taking back some of the gains of the past six months. Meanwhile, the business climate index fell 3 points to 7 index points in November. National Australia Bank's chief economist Sally Olde said that the decline in profitability and operating conditions exceeded the boost brought about by weak employment growth. This weak performance comes at a time when the Australian Federal Reserve is holding a policy meeting. Some economists warned that the central bank may issue tighter guidelines due to concerns about worsening inflation prospects.