Australia’s NAB Business Confidence Index edged down to -15 in October 2026 from a marginally revised -14 in the previous month, marking its lowest level since April and the eighth consecutive month of negative sentiment. Confidence remained well below average amid elevated cost pressures, higher interest rates and a weaker consumer outlook. Sentiment deteriorated across five of eight industries, including mining, manufacturing, wholesale, retail and recreation. Meanwhile, business conditions eased (-2 vs-1), remaining below their long-run average, as sales and profitability declined, while employment rebounded. Purchase cost growth remained elevated, as did capacity utilisation. In contrast, labour cost growth eased, reflecting slower increases in transport and utilities, mining and construction. Although input cost pressures remained strong, output prices continued to rise at a slower pace, with overall product price growth edging down to around its long-run average.