Economic Buzz: Australia's business confidence edges up, price pressures ease

Cost and price pressures in Australia eased in May, while business confidence lifted off a low base and conditions held steady, according to the latest NAB Monthly Business Survey. Even so, confidence remains weak, with sentiment still negative across all industries and overall conditions continuing to track below average through 2026. The survey showed business confidence rose 10 points to -14 index points in May, while business conditions were unaltered at 3 index points. Capacity utilisation fell to 81.9%, dipping below 82% for the first time in 12 months. Forward orders edged up 5 points and capex lifted 6 points. Purchase cost growth eased to 2.6% in quarterly equivalent terms, labour cost growth eased to 1.5%, product price growth slowed to 0.9% and retail price growth eased to 1.5%.

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