Australia Business Sentiment Falls to 6-Month Low

Australia’s NAB Business Confidence Index edged down to -15 in October 2026 from a marginally revised -14 in the previous month, marking its lowest level since April and the eighth consecutive month of negative sentiment. Confidence remained well below average amid elevated cost pressures, higher interest rates and a weaker consumer outlook. Sentiment deteriorated across five of eight industries, including mining, manufacturing, wholesale, retail and recreation. Meanwhile, business conditions eased (-2 vs-1), remaining below their long-run average, as sales and profitability declined, while employment rebounded. Purchase cost growth remained elevated, as did capacity utilisation. In contrast, labour cost growth eased, reflecting slower increases in transport and utilities, mining and construction. Although input cost pressures remained strong, output prices continued to rise at a slower pace, with overall product price growth edging down to around its long-run average.

Australia’s NAB Business Confidence Index fell to -13 in September 2026 from a revised -9 in the prior month, its lowest since May and the seventh straight month of negative sentiment. Confidence stayed well below average amid oil price volatility and renewed Middle East tensions, heightening cost concerns. Sentiment weakened in five of eight industries, though mining, wholesale and retail improved. Meanwhile, business conditions were broadly steady, as modest gains in profitability and trading were offset by employment sliding to a five-year low. Purchase costs remained elevated, continuing to outpace final price growth, while capacity utilisation stayed above average in most sectors, underscoring persistent pressures. The survey points to slower Q3 growth and softer labour demand ahead. The mix of weak confidence, high costs, above-average utilisation and subdued profitability highlights risks of further price pass-through and a sharper slowdown in activity into late 2026.

Australia’s NAB Business Confidence Index fell to -8 in August 2026 from -6 in the previous month, marking the lowest reading since May. Meanwhile, business conditions slid to a six-year low, dropping below the long-run average since mid-2025, amid declines in sales, profitability, and employment. The deterioration pointed to a broad-based weakening in business activity, with firms becoming more cautious about demand and operating conditions. The survey also suggested that cost pressures remained elevated, while forward orders softened, highlighting growing headwinds to business investment and hiring. The subdued confidence and weakening conditions may reinforce expectations that the Reserve Bank of Australia will remain cautious on further policy easing, particularly as inflationary pressures remain sticky.