Australia’s NAB Business Confidence Index fell sharply to -1 in February 2026 from 4 in January, its first negative reading since the previous April, as firms turned more cautious following the February rate hike. Even so, overall business conditions remained steady and broadly in line with their long‑run average: profits were unchanged at 4, sales edged up to 12 from 11, and employment eased slightly to 3 from 4.
Cost pressures re‑intensified over the month, with both labour and input costs rebounding. Quarterly growth in retail prices accelerated to 1.0% from 0.3%, pointing to renewed inflationary pressures. On the upside, investment intentions rose to their highest level in three years, and forward orders tripled to +6, indicating the prospect of stronger demand ahead.
The survey was conducted between February 23 and March 2, capturing only the initial phase of the U.S.–Israeli attack on Iran and the subsequent spike in energy prices.
