Latest Business Conditions Report
24 Sep 2026 | By Nathan Wallwork, Head of Economics & Policy
Overview
Business confidence across New South Wales has improved modestly from the record lows reported last quarter but remains firmly negative as businesses continue to face weak operating conditions, rising costs and uncertainty about the economic outlook.
Our survey of 811 businesses was conducted in August 2026. This report covers business confidence, hiring intentions, cost pressures, future proofing including business adoption of Artificial Intelligence, and feedback to the NSW Government on what policy changes businesses need to see ahead of the 2027 NSW State Election.
Key findings:
- The Business Confidence Index rose from its historic low last quarter of -78.0 to a still subdued -65.0. Future confidence also rebounded but remained restricted at -47.3.
- Businesses hiring intentions remain cautious with only 12% of businesses intending to hire over the next three months and 21% expecting to cut staff
- Taxes, levies and other government charges remained the top cost concern for businesses for a second consecutive quarter.
- Ahead of the election, businesses call for the next NSW Government to make doing business and employing easier. Asked for a single area of policy change, 35% of businesses have asked the next NSW Government to reduce taxes and charges, and 13% called for reduced red tape.
Download the full report to explore the findings and insights in more detail.
Business NSW members can access the full report by signing in. Non-members can access the report by providing a few details.
