The NAB business survey for Australia showed weaker business conditions but a small improvement in business confidence in January. A separate survey providing more up-to-date consumer confidence data showed consumer sentiment increased strongly at the start of February.

The NAB survey's business conditions index fell from 8 in December to 6 in January, its lowest level since early 2022. Respondents reported weaker trading conditions, profitability, and employment, but less pronounced weakness in forward orders. The survey, however, showed stronger price pressures, with its measure of quarterly change in labour costs, purchase costs, and retail prices all increasing at a faster pace.

The survey's business confidence index rose from zero in January to plus 1 in February. Sentiment remains weak across most sectors and most parts of the country, with the index still well below its long-run average.

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.