Australia May 2025 business conditions index falls to 0 vs +2 in April (long-run average is around +6)

  • business confidence index rises to +2 vs -1 in April

Some of the sub measures:

  • sales index +5 in May vs. +6 in April
  • employment index 0 vs 4 in April
  • profitability unchanged at -4

NAB chief economist Sally Auld

  • "By industry, the persistent weakness in retail business conditions and confidence aligns with the softer-than-expected pick-up in consumption over Q1"
  • "Our measures of profitability and trading conditions are notably weaker in retail than other industries"
  • 'Overall, this survey highlights that business conditions remain weak amid ongoing profitability pressures and soft demand, with signs of a further softening in labour demand.'
  • "We will watch whether there is a more sustained softening in labour demand, with the employment index easing to below average levels"
Source: Forex Live