Australian Business Conditions Remain Steady in September 2025

Key findings from the survey include:

• **Sales Performance**: Business sales improved, rising 3 points to +16, indicating a positive trend in consumer demand.
• **Profitability**: Profit margins experienced a modest increase, with the profitability index up by 1 point to +6.
• **Employment**: Employment figures declined, offsetting gains in sales and profitability, highlighting ongoing challenges in the labor market.

NAB Chief Economist Sally Auld noted that both business confidence and conditions appear to be consolidating just above their long-run average levels after improvements through mid-2025. This stability follows economic data indicating that Australia experienced its fastest quarterly growth in two years during the June quarter, driven by increased consumer spending amid lower borrowing costs and easing inflation.

However, forward orders slipped into negative territory, suggesting some uncertainty ahead. Input costs rose slightly, though they remained lower than earlier in the year. Retail price growth increased modestly to 0.7%, while labor cost growth slowed to 1.5%.

For business owners and financial decision-makers, these findings suggest a cautiously optimistic outlook. The steady conditions and slight improvements in sales and profitability provide a stable foundation for strategic planning and investment. However, the decline in employment and negative forward orders highlight the need for vigilance and adaptability in navigating potential challenges in the economic landscape.