In April, Australian businesses continued to thrive despite economic challenges, thanks to strong customer demand and a stable labor market. The National Australia Bank’s monthly survey showed that the business conditions index, which tracks trading conditions, profitability, and employment, fell slightly by two points to 14 index points, but remained above average levels. Among various industries, transport, utilities, and wholesale reported significant increases in conditions. Tasmania, Western Australia, and South Australia experienced strong growth in business conditions, while New South Wales, Queensland, and Victoria saw a fall. The survey revealed that although operating costs remained inflated, inflation in the retail sector decreased, signaling a possible softening in the early part of the second quarter. ANZ Bank economists noted that price growth is still too high for the Reserve Bank of Australia to comfortably bring inflation down to the two to three percent target range. Despite slight improvement in business confidence, consumer sentiment dipped following the latest interest rate hike on May 2, prompting concerns that demand for goods and services may slow.