Australia Business Confidence1997-2021 Data | 2022-2023 Forecast | Calendar

The NAB business confidence index in Australia fell 3 points from a month earlier to 15 in March 2021 but remained well above its long-run average. Sentiment was generally weaker across all industries, led by a pull-back in wholesale and manufacturing. Meantime, business conditions rose 8 points to a record high of 25, amid a solid gain in trading (35 vs 23 in February), and noticeable rises in both profitability (26 vs 18) and employment (16 vs 9). Also, forward orders rose 7 points to a record high of 17, while capacity utilization rose further and is now well above average (82.3 vs 81.8). At the same time, price pressures remain soft but have increased somewhat over recent months. “This is a very solid survey result. Businesses are telling us activity continues to increase at a very healthy rate as we have moved past the rebound phase in activity with the earlier removal of pandemic-related restrictions," said Alan Oster, NAB Group chief economist.

The NAB business confidence index in Australia rose 4 points from the previous month to 16 in February 2021, its highest level since early 2010, with all states and industries reporting gains, except for retail. In addition, the gauge measuring business conditions climbed 6 points to 15, matching the December reading, which was the highest level since August 2018, with all three sub-components improving: trading (21 vs 13); profitability (17 vs 13); and employment (8 vs 3). Meantime, capacity utilization and capex continue to rise and have now exceeded pre-virus levels and their long-run averages. Forward orders also rose and are now well above average. "Business conditions and confidence are both at multi-year highs and, importantly, we’re starting to see an uptrend in business hiring and investment activity.” said Alan Oster, NAB Group Chief Economist.

National Australia Bank's index of business confidence jumped to 10 in January 2021 from an upwardly revised 5 in December. The latest reading was well above the long-run average as a recovery in the economy from the COVID-19 shocks gained momentum. Sentiment improved the most in recreation & personal, followed by finance & business services, wholesale and manufacturing. In contrast, business conditions fell sharply to 7 (vs 16 in December), driven by a decline in all three sub-components: trading (11 vs 22), profitability (9 vs 13), and employment (3 vs 10). Meantime, capacity utilization edged up and is now at its long-run average as well as being around its pre-pandemic level (81.0 vs 80.8). Forward orders edged lower and are just below average (1 vs 2). “Business started the year on a more optimistic note, even as conditions eased from the strength we saw in December," said Alan Oster, NAB Group chief economist “Importantly, employment remains in positive territory.”

National Australia Bank's index of business confidence dropped sharply to 4 in December 2020 from an upwardly revised 13 in November, reflecting the impact of the Sydney COVID-19 outbreak. Sentiment deteriorated in all industries, except mining, construction, and transport & utilities. Meantime, business conditions rose to 14, the highest since September 2018, from 7 in November, with all three sub-indices were above average for the first time since early 2019: employment (9 vs -4 in November), trading (20 vs 15), and profitability (11 vs 13). Meantime, capacity utilization (80.9 vs 79.1) saw further gains and is now around its long-run average and pre-virus levels, while forward orders (1 vs 6) pulled back but remain in positive territory. "The rise in the employment index is very encouraging and is consistent with the big gains we’ve seen in the official jobs data,”said Alan Oster, NAB Group Chief Economist.