NAB Morning Call US confidence slides, tech expectations rise, Aussie CPI out today
7 snips
Oct 28, 2025 Ken Crompton, NAB Markets economist, provides deep insights into the current economic landscape. He discusses the surprising slide in US consumer confidence amid a federal shutdown and its impact on lower-income households. The conversation shifts to the upcoming tech earnings and the question of whether AI will truly boost productivity. Ken also highlights the significance of Australia’s CPI data for the RBA's decisions on interest rates, alongside updates on volatile regional Fed surveys and the geopolitical tensions affecting markets.
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Episode notes
AI Earnings Are The Real Test
- Tech earnings will test whether AI investments translate into sustainable productivity and future earnings.
- Ken Crompton highlights big-capex and energy deals as signs tech firms are vertically integrating to support AI growth.
Tech Becomes Energy-Intensive
- Big tech is committing huge CapEx and even energy investments to support AI infrastructure and operations.
- Examples include deals to reopen nuclear plants and vertical integration into energy to sustain compute needs.
US Consumer Confidence Is Sliding
- US consumer confidence is weakening with expectations hitting a three-year low and headline confidence at a six-month low.
- Conference Board shows low hiring sentiment consistent with a subdued labour market and modest payroll gains likely.