Overview

• The NAB business conditions index fell to +2 in April, significantly below the long-term average, signaling subdued activity.
• Profitability dropped sharply to -4 as rising input costs continued to pressure business margins across sectors.
• Business confidence inched up slightly but remained weak at -1, reflecting ongoing caution among Australian firms.
• Capital spending intentions fell to a below-average +1, with companies delaying investments amid global trade uncertainty.
• Markets are increasingly betting on a Reserve Bank of Australia interest rate cut on May 20 to help stabilize sentiment and support growth.