Business Confidence Rises for a Third Month

Business confidence rises for a third month

The June NAB Monthly Business Survey showed business confidence rising for a third consecutive month. It's a modest move off a low base, but for brokers it's a useful read on where client appetite may be heading into the second half of the year.

‍

Confidence is recovering, but still soft

Confidence rose 9 points in June to -5 index points. It remains negative and below its long-run average, so this is a recovery rather than a turnaround. That said, it has now retraced around four-fifths of the fall recorded in March, when the Middle East conflict weighed on sentiment. Business conditions held steady at +3 points for a third month, and forward orders edged up slightly.

‍

The improvement was broad

The more notable feature was the breadth. Confidence lifted in every state — led by NSW (+13), with Victoria and WA up around 10 points and Queensland up 7 — and across most industries, with retail and manufacturing rebounding hardest after being the weakest in May. For gauging client sentiment, that spread tends to matter more than the headline level, since it suggests the improvement isn't confined to one region or sector.

‍

Cost pressures continued to ease

Input costs also softened. Purchase cost growth moderated to 2.0% in quarterly terms, down from a 4.5% spike earlier in the year, while final product price growth slowed to 0.6% and retail prices fell for the first time in seven years.

‍

What it may mean for brokers

None of this points to a surge in activity. But a steadier mood, easing costs and a more stable rate outlook are the kind of conditions under which businesses gradually revisit the equipment and vehicle decisions they'd been deferring. It's worth keeping an eye on as client conversations develop over the coming months, rather than reading too much into a single month's data.

We'll continue to track the survey as it's released and share what stands out for the asset finance market.

‍

_{Source: NAB Monthly Business Survey, June 2026 (National Australia Bank).}