Economic Buzz: Australian business confidence dips, conditions remain stable

Australia?s NAB Business Confidence Index fell to a three-month low of 4 in August 2025 from 8 in July. Despite the drop in confidence, business conditions improved to 7, supported by steady sales, stronger profitability, and higher employment. Forward orders turned positive for the first time in two years, and capacity utilization rose to 83.1%. Purchase cost growth slowed to 1.1%, the lowest since 2021, while retail price growth halved to 0.5% and labor cost growth eased to 1.5%.

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