The slower pace of recovery in Australia has discouraged the business confidence for the third consecutive month. The business was swinging high in the February, which has now chopped down around 50%.

In National Bank’s latest business outlook survey, it was revealed that the business volatility is all time high. There are just 28% of respondents, who believe that the business conditions would rectify. The confidence has been shaken by the agricultural and manufacturing sectors, which faced a decline of 14 points from last month. Only 8% of the respondents projected to recruit staff in the coming year.

Also, 31% of the respondents expect hike in the prices. The figure was 39% in June.

National Bank quoted, "Perhaps this is an indication of the tough demand environment firms are facing, and the reality that there will be a lot of consumer resistance to price rises, no matter what the cause".

The sector, which outshone in the market, is the Construction sector, in which there is a growth of 4%, signaling increasing immigrants to the Country.

The profit outlook also reduced by 10 points and investment targets climbed down five points.

Some respondents also expected a further increase in the Official Cash Rate by the Reserve Bank.