Outlook among Australian companies worsened in April as the government continued the shutdown to prevent the spread of the coronavirus pandemic across the country. According to the NAB, the business conditions index fell further into negative territory from -22 in March to -34 in April, indicating increasing pessimism among firms.

As the pandemic continues to dominate the sentiment worldwide, the business outlook index in Australia is far below the average reading of +6 and has sunk lower than readings during the 2009 financial crisis. The business confidence improved sightly from -66 in March to -46 in April, but still remains below zero indicating pessimism.

Meanwhile, the index measuring the outlook for sales and profits as well as employment also saw sharp declines in April. The NAB survey points to a sharp rise in unemployment across Australia on account of the shutdowns due to the pandemic.

According to Chief Economist at NAB Group, Alan Oster, “Confidence saw a rebound, but this provides little comfort given it remains around twice as weak as the 1990s recession. Business conditions declined further in the month, with a broad-based deterioration across industries.”