FX.co ★ Australia Business Sentiment Rises to Near 3-Year High

Australia’s NAB Business Confidence Index increased to 7 in July 2025 from 5 in June, achieving its fourth straight monthly rise and reaching its highest level since August 2022. This boost was largely due to anticipated reductions in borrowing costs. However, the business conditions slightly weakened, shifting from 7 to 5, but remained stable. This was characterized by a slowdown in sales growth, with figures moving from 14 to 11, decreased profitability dropping from 4 to 2, and a decline in employment from 4 to 1. "The survey aligns with signs of improving economic growth, though it still underscores the cost pressures many businesses face," remarked Sally Auld, NAB Chief Economist.