Australia Business Sentiment Improves

2026-06-09 01:42 By Farida Husna 1 min. read

Australia’s NAB Business Confidence Index rose to -14 in May from -24 in the prior month, marking its highest print since February and signaling modest improvement from very weak levels.

Confidence, however, remained firmly negative, underscoring concerns over the economic outlook.

Business conditions held at 3, halting a four-month slide as activity stabilized despite softer demand.

Profitability stayed the weakest component relative to long-run norms, reflecting margin strain from elevated costs.

Cost growth eased but remained historically high, while capacity utilisation slipped below 82% for the first time since early 2025, pointing to softer momentum.

NAB economist Michael Hayes noted sentiment was negative across industries amid global uncertainty, a weakening domestic backdrop, and persistent cost pressures.

Firms also face high borrowing costs after the central bank lifted rates to 4.35% to curb sticky inflation and prevent rising energy costs from feeding into consumer prices.



News Stream
Australia Business Sentiment Improves
Australia’s NAB Business Confidence Index rose to -14 in May from -24 in the prior month, marking its highest print since February and signaling modest improvement from very weak levels. Confidence, however, remained firmly negative, underscoring concerns over the economic outlook. Business conditions held at 3, halting a four-month slide as activity stabilized despite softer demand. Profitability stayed the weakest component relative to long-run norms, reflecting margin strain from elevated costs. Cost growth eased but remained historically high, while capacity utilisation slipped below 82% for the first time since early 2025, pointing to softer momentum. NAB economist Michael Hayes noted sentiment was negative across industries amid global uncertainty, a weakening domestic backdrop, and persistent cost pressures. Firms also face high borrowing costs after the central bank lifted rates to 4.35% to curb sticky inflation and prevent rising energy costs from feeding into consumer prices.
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Australia Business Mood Remains Deeply Negative
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