The NAB business survey for Australia showed slightly weaker conditions and a marked deterioration in confidence in May. The survey's business conditions index fell from 7 in April to 6 in May, with respondents reporting weaker profitability and weaker trading conditions but stronger employment and a slightly smaller decline in forward orders. The survey also showed sharper increases in labour costs, purchase costs, and retail prices.

The survey's business confidence fell from plus 1 in April to a six-month low of minus 3 in May. Sentiment weakened across most sectors and most parts of the country, with the index now further 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.