AU NAB Monthly Business Survey: March 2026

Business Confidence Drops Sharply Amid Middle East Conflict

Following the escalation of tensions in the Middle East, business confidence experienced a significant decline, plummeting by 29 points to reach -29 on the index. This marks the second steepest monthly decrease ever recorded by the survey, with similar drops previously occurring only during the Global Financial Crisis and the early days of the COVID-19 pandemic.

The downturn in business conditions was widespread, affecting nearly all sectors. The most pronounced declines were observed in transport and utilities, construction, and retail—industries where rising costs and shifts in consumer demand were felt most acutely.

Despite the sharp drop in confidence, overall business conditions in March edged down just 1 point to 6 on the index. This suggests that, although global events have weighed heavily on sentiment, the broader operating environment has remained relatively stable.