SYDNEY, Dec 13 Reuters Australian businesses turned in a pessimistic outlook for the first time this year in November as they worried about inflation and higher interest rates taking a toll on consumers in the period ahead, even sales and profitability remained robust.

Tuesday39;s survey from National Australia Bank Ltd NAB showed its index of business conditions eased 2 points to 20 in November still far above its longrun average.

But the measure of confidence fell 4 points to 4, hitting negative territory for the first time since December last year. That meant the gap between the two indicators was the widest for any month on record bar March 2020 the early days of the COVID19 pandemic.

Overall, the survey suggests the economy powered through November with consumers still spending in the runup to Christmas, said NAB chief economist Alan Oster.

However, firms have become increasingly pessimistic about the future as they look ahead to a slowing global economy and a period of weaker consumption as inflation and higher rates weigh on households.

The NAB surveys have shown business activity beating all expectations for some months even as the Reserve Bank of Australia RBA has lifted interest rates by a total 300 basis points to a 10year peak of 3.1.

That tightening has taken a heavy toll on consumer sentiment, yet spending has held up well, helped by an unemployment rate near fivedecade lows of 3.4.

The NAB survey continued to show resilience in demand, with its…