| Actual | Previous | |
| Business Conditions Index | 3 | 6 |
| Business Confidence Index | -24 | -29 |
Highlights
The NAB business survey for Australia showed weaker conditions in April and another month of very weak sentiment, largely reflecting the ongoing impact of the Iran conflict. The survey's business conditions index fell to plus 3 from plus 6, with respondents reporting weaker trading conditions, flat profitability, a bigger drop in forward orders and weaker employment.The survey also showed a bigger increase in purchase costs and final products prices.
The survey's business confidence index rose from minus 29 in March to minus 24 in April. This is one of the largest monthly falls in survey history. In addition to the Iran conflict, sentiment has also been been hit by three consecutive increases in policy rates by the Reserve Bank of Australia.
Definition
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.
Description
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.