The NAB business survey for Australia showed a sharp deterioration in confidence but slightly improved conditions in February. The survey's business conditions index rose from plus 3 to plus 4, with respondents reporting slightly improved trading and profitability conditions, steady weakness in forward orders and slightly weaker employment.The survey also showed a bigger increase in purchase costs but a stready increase in retail prices.

The survey's business confidence fell from plus 4 in January to minus 1 in February. Sentiment weakened across most sectors, perhaps reflecting concerns that price pressures will prevent substantial policy easing in coming months.

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.