The month-on-month decline highlights ongoing volatility across key sectors, particularly those sensitive to commodity and energy prices. It also suggests softer demand conditions in manufacturing and communications, signaling that economic momentum likely eased in the September quarter. While some of the weakness reflects temporary price effects (via energy rebates), the data suggest businesses are facing increased cost pressures and uneven demand.
The weaker turnover may support a more cautious stance from the RBA, as softer business activity could help contain inflation without further rate hikes. However, given the MBTI’s limited coverage of monthly BAS reporters, the results should be interpreted carefully. Overall, the August release indicates that Australia’s economy remains on a moderate but fragile growth path, with early signs of slowing momentum heading into late 2025.
Source: Australian Bureau of Statistics, Monthly Business Turnover Indicator, October 2025