The NAB Business Survey for Australia shows weaker conditions and sentiment in May after officials at the Reserve Bank of Australia increased policy rates further early that month. A separate survey also published today showed subdued consumer confidence in June.

The NAB survey's business conditions index fell from 14 in April to 8 in May, with respondents reporting weaker trading conditions, forward orders, profitability and employment. The survey also shows stronger growth in labour costs but a smaller increase in retail prices, broadly in line with the RBA's assessment that price pressures are starting to moderate. The survey's business confidence index fell from zero in April to minus 4 in May, with this weakness broad-based across most industries.

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.