While there have been numerous reports that the outlook for Christmas will be a positive one, the latest survey from National Australia Bank suggests otherwise.

The NAB monthly business survey for November shows business confidence has dropped to the lowest levels since the global financial crisis.

The subdued outcome was fairly broad-based across industries, but particularly weak in retail, construction, manufacturing and wholesale, implying recent rate reductions by the RBA have not yet materialised into stronger demand.

Business conditions remained subdued in November – unchanged at -5 index points – with this outcome implying the economy is clearly growing below trend. Business conditions were particularly challenging in construction, manufacturing and wholesale – despite improving in these industries in the month – and retail.

Retail price growth dropped to -0.2 per cent in November from -0.1 per cent in October.

According to the survey, it’s forecasted that weakness will continue into the fourth quarter with the path for interest rates now appearing even lower, with one more rate cute likely before the middle of next year.