Business activity in Australia slowed slightly in January 2026 as cost pressures eased.

NAB's survey shows that Australia's business conditions index fell 2 points to +7, however input costs dropped to their lowest level since 2021.

Báo Nghệ An•11/02/2026

Business activity in Australia saw a slight decline in January 2026 due to slowing sales and profits. According to the latest survey from the National Bank of Australia (NAB), released on February 10th, the business conditions index fell by 2 points to +7, reversing the increase recorded in December 2025.

Trends in key business indicators

Detailed survey data shows that the sales index fell 6 points to +10 in January 2026, although this figure remains in line with the long-term average. Business profits also decreased by 3 points to +8. Conversely, the business confidence index showed a slight improvement, increasing by 1 point to +3.

Business activity and economic indicators in Australia in January 2026, as surveyed by NAB.

Meanwhile, the labor market remained stable, with the employment index staying at +5 for the third consecutive month. This reflects that labor demand in Australia remains fairly robust despite short-term fluctuations in sales and profits.

Inflationary pressure and market reaction

A positive sign for inflation prospects is that cost pressures have eased to their lowest level since 2021. Surveys indicate that both labor costs and input costs decreased in the first month of 2026. The quarterly rate of retail price increases also slowed, to just 0.3% compared to 0.5% in December 2025.

Notably, this survey was conducted just before the Reserve Bank of Australia (RBA) raised interest rates by 25 basis points to 3.85% last week. This was the first interest rate hike in two years, reflecting authorities' efforts to control persistent inflationary pressures.

Michael Hayes, an economist at NAB, noted that cost and price indicators in the survey have set new lows since the pandemic. Overall, the Australian economy has retained much of the growth momentum accumulated over the past year with high activity levels, although capacity utilization has begun to show signs of slowing in recent months.

Source: https://baonghean.vn/hoat-dong-kinh-doanh-tai-australia-giam-nhe-trong-thang-12026-khi-ap-luc-chi-phi-ha-nhiet-10323299.html