Overview

Business conditions in New South Wales fell sharply in the June 2026 quarter, with confidence at record lows as demand weakened, costs rose and uncertainty persisted.

This survey of 759 businesses was conducted in May 2026. It covers business confidence, hiring intentions, cost pressures, insurance, and an in-depth review of how the Middle East conflict is impacting business costs, supply chains and consumer demand across the state.

Key Findings

• Business confidence fell for the third quarter in a row, reaching a record low of –78.0 (down from -52.4). Forward-looking confidence also declined to -70.8, a near record low
• Hiring intentions are very subdued, with substantially more businesses planning to reduce staff than add headcount in the next three months
• Taxes, levies and other government charges have become businesses’ top cost concern, overtaking insurance for the first time

Ongoing impacts of the middle east conflict:

• Business costs have risen substantially, with 60% of businesses reporting cost increases of at least 10% since February, driven by fuel and freight costs
• 37% of business owners have used personal savings to keep their business running
• 16% of businesses have had to entirely cancel their investment and growth plans, and a further 68% have deferred plans
• One in ten businesses is ‘already at breaking point’, meaning they will be forced to close or restructure imminently unless economic conditions change

Download the full report to explore the findings and insights in more detail.

 Download the report