Australia’s business sentiment improved sharply in June, with NAB Business Confidence rising from 2 to 5, its highest trend level in over a year. Business Conditions surged from 0 to 9 after weakening for five straight months. The rebound was broad-based, with trading conditions jumping from 5 to 15, profitability returning to positive territory from -5 at 4, and employment conditions edging up from to 3.
On the pricing side, signals were mixed. Labour cost growth eased slightly from 1.6% to 1.5% (quarterly equivalent), while purchase costs rose from 1.2% to 1.5%. Final product price growth ticked up from 0.5% to 0.6%, although retail price growth slowed to 0.6%, hinting at easing consumer price pressures despite supply-side stickiness.
NAB’s Gareth Spence said the data suggest momentum may be picking up into the second half of 2025. “While we know the monthly survey can be volatile, the hope is at least some of these trends will be sustained,” he noted, calling the jump in both confidence and conditions a positive surprise amid ongoing global uncertainty.
