National Australia Bank business survey for October 2025.
Business confidence dipped to 6
- prior 7
Business conditions, which is a more objective measure than the sentiment based confidence, rose to 9, its highest since March 2024
- driven by stronger sales and profitability
- prior 8
Australian business conditions improved in October, suggesting the economy is maintaining solid momentum despite elevated capacity pressures and cautious central bank policy.
NAB Chief Economist Sally Auld said the data show
- the economy has held onto the momentum gained since late 2024
- warned that high capacity utilisation and persistent wage and margin pressures continue to weigh on business confidence
The survey’s sales sub-index jumped five points to +19,
- profitability rose three points to +9,
- and employment held steady at +3.
- cost pressures eased further, with purchase costs rising at a 1% quarterly rate and labour costs at 1.5%
- capacity utilisation ticked up to 83.4%, reflecting ongoing tightness in production.
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The upbeat business survey follows the Reserve Bank of Australia’s decision earlier this month to hold the cash rate at 3.6%, citing lingering inflation and firm domestic demand.
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The NAB survey points to a resilient economy with easing cost growth but sustained capacity strain, reinforcing expectations the RBA will stay patient on rate cuts despite improving sentiment in business and households.
