A mixed bag in Australian business survey - confidence a touch better, conditions worse

Business confidence in Australia has improved slightly, but business conditions have worsened, according to a recent survey.

The National Australia Bank's monthly business survey found that business confidence rose by one point in August, reaching a level of +4. This is the first time in three months that confidence has improved, although it remains below the long-term average.

However, business conditions fell by four points in August, reaching a level of -6. This is the lowest level since May 2020, and suggests that the economic recovery from the COVID-19 pandemic may be slowing down.

The survey also found that the employment index fell by three points, indicating that the labor market may be weakening. This is concerning, as strong employment growth has been a key factor in Australia's economic recovery.

Overall, the survey paints a mixed picture of the Australian economy, with improved confidence but worsening conditions. This suggests that businesses are feeling more optimistic about the future, but are currently facing challenging operating conditions.