NAB Business Survey - August 2026
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Summary
Business confidence fell 2pts in August and remains well below its long-run average. Ongoing global uncertainty, volatility in oil prices and continued cost pressures appear to be weighing on business confidence. Business conditions also declined this month, falling 5pts and turning negative for the first time in 6 years. The decline in conditions in the month was broad-based across industries and was driven by a 10pt fall in profitability and a 5pt fall in trading conditions, with both subcomponents now sitting at new post-Covid lows. The decline in the profitability index bears watching, given its leading relationship with broader labour market conditions. Cost and price growth measures remained broadly unchanged in the month and remain elevated compared to their long-run averages. The spike in capacity utilisation seen last month partially unwound in August, declining 0.6ppts to 82.5% and remains around its levels seen at the start of the year. Overall, the key signals from this month’s survey are slowing growth amid a backdrop of persistence in cost and price pressures. The slowing in growth in H1 2026 has led to some easing in capacity pressures, although the capacity utilisation series remains above its long-run average.
Next release date: 13 October 2026
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All prices and analysis at 8 September 2026. This information has been prepared by National Australia Bank Limited ABN 12 004 044 937 AFSL 230686 ("NAB"). The content is distributed by WealthHub Securities Limited (WSL) (ABN 83 089 718 249)(AFSL No. 230704). WSL is a Market Participant under the ASIC Market Integrity Rules and a wholly owned subsidiary of National Australia Bank Limited (ABN 12 004 044 937)(AFSL No. 230686) (NAB). NAB doesn’t guarantee its subsidiaries’ obligations or performance, or the products or services its subsidiaries offer. This material is intended to provide general advice only. It has been prepared without having regard to or taking into account any particular investor’s objectives, financial situation and/or needs. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice. Past performance is not a reliable indicator of future performance. Any comments, suggestions or views presented do not reflect the views of WSL and/or NAB. Subject to any terms implied by law and which cannot be excluded, neither WSL nor NAB shall be liable for any errors, omissions, defects or misrepresentations in the information or general advice including any third party sourced data (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the general advice or information. If any law prohibits the exclusion of such liability, WSL and NAB limit its liability to the re-supply of the information, provided that such limitation is permitted by law and is fair and reasonable. For more information, please click here.