Australia’s NAB Business Confidence Index fell to -8 in August 2026 from -6 in July, its lowest level since May. At the same time, business conditions dropped to a six-year low and have remained below the long-run average since mid-2025, reflecting declines in sales, profitability, and employment.
The results point to a broad-based weakening in business activity, with firms increasingly cautious about demand and operating conditions. The survey also indicated that cost pressures remain elevated, while forward orders have softened, underscoring rising headwinds to business investment and hiring.
The combination of subdued confidence and deteriorating conditions is likely to reinforce expectations that the Reserve Bank of Australia will proceed cautiously with any further policy easing, particularly given that inflationary pressures remain persistent.
