The NAB business survey for Australia showed weaker conditions but less weak sentiment in December, with the survey conducted following an eighth consecutive increase in policy rates made by the Reserve Bank of Australia early in the month. The survey's business conditions index fell from 20 in November to 12 in December, with respondents reporting weaker trading conditions, employment, forward orders and profitability. The survey also shows labour costs and retail prices grew at a slower pace in December, consistent with the RBA's views that price pressures may be starting to moderate. The survey's business confidence index picked up from minus 4 in November to minus 1 in December. Weakness in sentiment was broad-based across both sectors and states.

The National Australia Bank (NAB) Business Survey is based on a survey of around 500 firms across the non-farm business sector on their assessment of current business conditions and their sentiment about the outlook. The survey's business conditions index covers trading, profitability, employment, forward orders, stocks, and exports, with respondents also providing responses on changes in costs and selling prices. The survey is conducted in the second half of each month.

The survey of business conditions and confidence offers timely updates on how Australian companies are performing and reacting to unfolding events including news about the overall economy and policy developments. as well as moves in the stock market and changes in interest rates. Investors can use the data to help forecast economic activity and better understand how business conditions and expectations affect sales, employment, investment and other economic outcomes.