Business confidence continued to slip in ANZ's latest monthly survey though the level remains high by historical standards. A net 40 per cent of firms expect the general business situation to improve, down three points from June and the lowest level since April last year.
"The latest fall is marginal stuff in the overall scheme of things, but confidence is now 31 points off its peak [in February]," ANZ chief economist Cameron Bagrie said. "Confidence fell in all sectors bar manufacturing, with rural sentiment slipping into the red for the first time in 14 months."
Firms' expectations of their own activity - a better indicator of economic growth - fell marginally from a net 46 per cent positive to a net 45 per cent.
"But this was concentrated solely in retailing. Sentiment lifted in the other four segments," Bagrie said. "The overall level remains very healthy by historic standards."
A net 26 per cent of firms expect profits to increase, down three points from June, and investment intentions have also slipped three points to a net 26 per cent expecting to invest more.