FX.co ★ Australia Business Sentiment Rises from 3-Month Low

In September 2025, Australia's NAB Business Confidence Index experienced a rise, reaching 7 from August's three-month low of 4, indicating a level above the long-term average. Although business conditions remained stable at 8, there were notable variations within components: sales increased (16 compared to 13) and profits improved (6 against 5), while employment figures weakened. However, forward orders declined by 3 points into negative territory, suggesting a potential softening in demand moving forward. Input costs showed a slight increase but still remained significantly below the levels seen earlier in the year. The growth of retail prices on a quarterly basis advanced to 0.7% from 0.5%, while growth in labor costs decelerated to 1.5% from 1.6%. NAB's Chief Economist, Sally Auld, commented on the survey, highlighting that September's results reflected ongoing positive trends in key metrics, emphasizing that business confidence and conditions are "consolidating slightly above their historical average levels following improvements observed through mid-2025."