Australian business conditions held steady in September, as stronger sales and profits were offset by weaker employment, according to the latest National Australia Bank (NAB) survey.
NAB’s index of business conditions was unchanged at +8, while business confidence rose three points to +7, sitting just above its long-run average.
Sales rose three points to +16, and profitability edged up to +6, continuing an upward trend since May — a positive sign for future hiring. However, forward orders fell three points, slipping below average into negative territory.
Input costs ticked higher, while retail price growth accelerated to 0.7% from 0.5%, and labour cost growth eased slightly to 1.5%. The data suggest underlying resilience in business activity even as firms remain cautious amid an uncertain inflation and rate outlook.
The steady NAB survey suggests underlying resilience in Australia’s business sector despite soft hiring and weaker forward orders. Modest price pressures and improving confidence support the RBA’s cautious policy stance, reinforcing expectations for steady rates near term.