Business confidence in Australia rose 9 points to negative 5 in June, driven by gains in retail and manufacturing, National Australia Bank said in a Tuesday report.
Confidence remains 4 points below its February level and below the long run average of 5 index points, NAB said. It remains negative in all industries but improved across most industries, except for transport, utilities, and mining.
Business conditions was unchanged at 3 index points, for a third consecutive month. In trend terms, business conditions declined from above-average levels in late 2025 to be slightly below average. Capacity utilization was steady at 82%.
"The picture that emerges is one of an economy that is slowing, but not as sharply as many had feared a few months ago," said Sally Auld, NAB chief economist.
The survey suggests businesses are becoming less concerned, as the rise in fuel costs and disruption to activity from the Middle East conflict had a smaller impact on the Australian economy than feared.
It also points to a lower-than-expected inflation impact from the conflict, with purchase cost growth well down from its March peak, final prices slowing, and retail prices falling for the first time in seven years, per the report.