The NAB business survey for Australia showed steady conditions but ongoing weakness in sentiment in March after officials at the Reserve Bank of Australia continued to tighten policy early in the month. More up-to-date consumer confidence data also released today (the Westpac-Melbourne Institute Index of Consumer Sentiment) showed consumer sentiment improved but remained relatively subdued at the start of April.

The NAB survey's business conditions index fell from 17 in February to 16 in March, with respondents reporting slightly stronger trading conditions and forward orders but weaker employment and profitability. The survey also shows weaker growth in labour costs and retail prices, consistent with the RBA's assessment that price pressures likely peaked around the turn of the year. The survey's business confidence index improved from minus 4 in February to minus 1 in March, largely driven by the manufacturing sector and parts of the services sector.

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.