In January, Australia's business confidence index marginally increased. Concerns about interest rate hikes are weaker among businesses than among households.

A report released by the National Australia Bank shows that in January 2026, Australia's business confidence index rose slightly by 1 point to 3 points; however, the business conditions index fell by 2 points to 7 points, reversing the increase seen in December 2025, and remained in line with the long-term average. Analysts say that Australian businesses are less concerned about further interest rate hikes than households. The report indicates that in January, out of the three sub-indices that make up the business conditions index, the trading index fell by 6 points to 10 points, 2 points below the long-term average; profitability index dropped by 3 points to 5 points; while the employment index remained unchanged at 5 points for the third consecutive month.