SYDNEY, Dec 12 (Reuters) -
A measure of Australian business conditions retreated in November from record highs as firms grew more sober on the outlook for sales and profits, though employment intentions stayed encouragingly firm.
National Australia Bank's NAB.AX index of business conditions fell 9 points to +12 in November, unwinding all of October's surprise spike. The reading was still well above the long-run average of +5.
The survey's often volatile measure of business confidence dipped 3 points to +6.
"Despite the drop, business conditions remain well above the long-run average and are at solid levels across most of the economy," said NAB group chief economist Alan Oster.
"Forward orders were stronger as well," he added. "The construction industry is looking particularly good, but the retail sector is still lagging behind."
NAB's survey of more than 400 firms had been running hot for months now in stark contrast to the mood of consumers, who were fretting over rising utility costs and subdued wage growth.
Household spending accounts for around 56 percent of annual economic output so any improvement would be welcomed by policy makers.
The construction sector reported booming conditions thanks to strength in public investment and housing, while mining had recovered to be one of the best-performing industries this year.
The survey's measure of employment held at a relatively high +7 in November, firm enough to put more downward pressure on the unemployment rate. Labour costs remained subdued in the month as did measures of purchase costs and retail prices.