Rapid downturn comparable to recession

Business confidence is at its lowest since the 1991 recession, according to results from National Australia Bank’s (NAB) July business survey. The report also reveals that current business conditions are comparable to the wake of the September 11, 2001 terrorist attacks on the USA, which indicates a faster downturn than most economists had expected.

“One of the big problems we've had is it's moving faster than we thought,” remarked Alan Oster, chief economist at NAB.
 
Other economists called it a “brush with recession”.
 
Profitability, employment and trading all decreased in July, which the report attributed to interest rates damaging consumer confidence and lowering demand. Sectors affected were retail and recreational services and mining, which suffered a sharp decline.
 
More than 400 private sector firms participated in the NAB survey.