Business Conditions and Sentiments

This release has ceased

Insights into Australian business conditions and sentiments

Reference period
June 2026
Release date and time
30/06/2026 11:30am AEST

Key statistics

  • Almost half (46%) of businesses reported operating expenses had increased over the past four weeks.
  • Fuel prices (71%) and business overheads (65%) reported as the main reasons for increased operating expenses.
  • 58% of businesses made changes to business operations, with almost one in six (15%) of these businesses increasing prices in response to fuel prices or availability.

This is the final Business Conditions and Sentiments release. 

The ABS would like to thank all businesses for their involvement in the survey.

The survey of Business Conditions and Sentiments provides insights on changing business behaviour and sentiments in response to fuel prices or availability impacted by the closing of the Strait of Hormuz. 

The survey was conducted between 4 June and 15 June 2026.  

In responding to the survey, businesses were asked to provide a best estimate only, without accessing records or reports.

Business size categories used in this release:

  • Small (0-19 persons employed);
  • Medium (20-199 persons employed); and
  • Large (200 or more persons employed).

For information on the survey sample, response rates and the terminology used in this release, please refer to the Methodology.

Supply chain disruptions

Businesses were asked if they were currently experiencing any supply chain disruptions. A supply chain is a logistics network between a business and its suppliers to produce and distribute a product to customers. Supply chain disruptions refer to difficulty in getting the materials needed to produce and sell goods and services. 

In June 2026, one in six (16%) businesses experienced supply chain disruptions, unchanged from May 2026. 

Agriculture, forestry and fishing (35%) reported the highest proportion of businesses experiencing supply chain disruptions in June 2026, followed by Manufacturing (28%), Wholesale trade (27%) and Retail trade (22%).

  1. Proportion of responding businesses.
  1. Proportion of responding businesses. 

Businesses experiencing supply chain disruptions provided information about the extent to which they were being affected. In June 2026: 

  • 33% were affected to a great extent (e.g. major delays or cannot obtain certain items and significant impact on revenue), down 5 percentage points from May 2026.
  • 66% were affected to a small extent (e.g. some delays but little impact on revenue), up 10 percentage points from May 2026.

Impact of fuel prices or availability

Almost three quarters (73%) of businesses reported fuel prices or availability had a negative impact on the business, up 1 percentage point from May 2026.

Industries which had the highest proportion of businesses reporting a large negative impact due to current fuel prices or availability included:

  • Agriculture, forestry and fishing – 50% (down 2 percentage points)
  • Transport, postal and warehousing – 48% (down 7 percentage points)
  • Accommodation and food services – 36% (down 9 percentage points).
  1. Proportion of responding businesses. 
  2. Includes both large negative impact and small negative impact. 

Impact on business operations

In June 2026, 58% of responding businesses made changes to business operations due to fuel prices or availability, down 2 percentage points from May 2026: 

  • 44% absorbed cost increases, down 3 percentage points
  • 15% increased prices, up 3 percentage points
  • 6% implemented a fuel surcharge or levy (unchanged)
  • 5% changed or delayed production targets, schedules or volumes, down 1 percentage point.

Businesses in Agriculture, forestry and fishing (71%), Manufacturing (68%), Construction (58%) and Wholesale trade (55%) were most likely to absorb cost increases.

In June 2026, the top four industries with the highest proportion of businesses who increased prices in response to fuel prices or availability were:

  • Transport, postal and warehousing – 37%, up 12 percentage points
  • Wholesale trade – 35%, up 6 percentage points
  • Retail trade – 22%, up 11 percentage points
  • Construction – 22%, up 9 percentage points. 

Those in Transport, postal and warehousing (32%) and Wholesale trade (17%) were most likely to implement a fuel surcharge or levy in response to fuel prices. 

Businesses in Agriculture, forestry and fishing (17%, down 10 percentage points) and Education and training (11%, up 10 percentage points) were most likely to change or delay production targets, schedules or volumes.

The industries where businesses were least likely to make changes to business operations in response to fuel prices or availability in June 2026 were Financial and insurance services (63%), Arts and recreation services (61%) and Health care and social assistance (53%).

  1. Proportion of responding businesses.
  2. Businesses could choose more than one option. 

Impact on workforce

Almost one in four businesses (24%) made changes to their workforce in response to current fuel prices or availability:

  • 14% reduced or suspended non-essential travel activities to reduce fuel consumption (down 1 percentage point)
  • 8% made reductions to the size of their current workforce (down 1 percentage point). 
  1. Proportion of responding businesses.
  2. Changes made in the past four weeks. With the exception of ‘No changes made’ and ‘Don’t know’, businesses could select more than one response.

Businesses in Accommodation and food services (28%) were most likely to reduce the size of their current workforce, down 5 percentage points from May 2026. 

Businesses in Agriculture, forestry and fishing and Rental, hiring and real estate services (both 20%), Professional, scientific, and technical services (18%) and Accommodation and food services (16%) were most likely to reduce or suspend non-essential travel activities. 

The largest movements for changes to workforce were:

  • Agriculture, forestry and fishing – reduced or suspended non-essential travel activities (20%, down 13 percentage points)
  • Arts and recreation services – reduced the size of their current workforce (0%, down 12 percentage points)
  • Information media and telecommunications – reduced or suspended non-essential travel activities (12%, up 12 percentage points)
  • Administrative and support services – reduced or suspended non-essential travel activities (7%, down 11 percentage points).

In June 2026, medium sized businesses were most likely to reduce the size of their workforce (14%, up 1 percentage point) compared to small (7%, down 1 percentage point) and large businesses (6%, up 3 percentage points).

Impact on capital investment plans

Businesses were asked whether they had delayed or cancelled capital investment plans over the past four weeks in response to fuel prices or availability. 

In June 2026, just over one in seven businesses (15%) reported delaying or cancelling capital investment plans due to fuel prices or availability, a decrease of 2 percentage points since May 2026.

Agriculture, forestry and fishing (28%, down 3 percentage points) and Wholesale trade (24%, down 7 percentage points) had the highest proportion of businesses who reported they had delayed or cancelled capital investment plans, followed by Transport, postal and warehousing (23%, down 2 percentage points) and Accommodation and food services (21%, up 2 percentage points). 

Approximately 10% of businesses were unsure whether they had delayed or cancelled capital investment plans, and this was consistent across small, medium and large businesses (10%, 10% and 11% respectively), and is similar to May 2026 results.

  1. Proportion of responding businesses.
  2. Changes made in the past four weeks.   

Need for assistance or support

Businesses were asked whether they needed assistance or support in response to fuel prices or availability, and if so, whether they intended to seek assistance or support in the next four weeks. 

Almost one in eight (13%) businesses indicated they needed assistance or support in response to fuel prices or availability in June 2026, a decrease of 3 percentage points from May 2026.

  1. Proportion of responding businesses.
  2. With the exception of ‘No assistance or support needed’ and ‘Don’t know’, businesses could select more than one response. 
  1. Proportion of responding businesses.
  2. With the exception of ‘No assistance or support needed’ and ‘Don’t know’, businesses could select more than one response. 

Businesses reporting a need for financial assistance or support was highest in Transport, postal and warehousing (23%, up 1 percentage point), Retail trade (19%, down 1 percentage point) and Agriculture, forestry and fishing (18%, down 6 percentage points). 

Medium businesses were more likely to require financial assistance or support (13%, up 2 percentage points) compared to small (11%, down 3 percentage points) and large (5%, down 2 percentage points) in June 2026.

Of those businesses that indicated assistance or support was needed over a third (35%) indicated they would seek assistance in the next four weeks (down 7 percentage points). 

Changes in business revenue

Businesses were asked to provide an indication of how revenue had changed over the past four weeks and how it was expected to change over the next four weeks. Businesses were asked to provide a best estimate only.

In June 2026, almost one third (31%) of businesses reported revenue had decreased over the previous four weeks. The top four industries reporting the highest proportion of business recording a decrease in business revenue were:

  • Information media and telecommunications (48%, up 2 percentage points)
  • Wholesale trade (48%, down 1 percentage point)
  • Accommodation and food services (45%, down 9 percentage points) 
  • Administrative and support services (43%, up 4 percentage points).
  1. Proportion of responding businesses.
  2. Over the past four weeks. 

Expectation of revenue over next four weeks

Almost one quarter (24%) of businesses reported they expected revenue to decrease over the next four weeks, down 4 percentage points from May 2026. Information media and telecommunications (36%), Administrative and support services (31%), Accommodation and food services (30%) and Wholesale trade (29%) had the highest proportion of businesses expecting revenue to decrease over the next four weeks.

  1. Proportion of responding businesses. Businesses were asked to indicate changes to expected revenue over the next four weeks. 

Small and medium businesses (24% and 21% respectively) were more likely to report a decrease in expected revenue over the next four weeks compared to large businesses (12%).

Changes in operating expenses

Almost half of responding businesses (46%) reported operating expenses had increased over the past four weeks, down 4 percentage points from May 2026.

This was higher for medium sized businesses (50%), compared to small (46%) and large businesses (42%). 

Businesses in Agriculture, forestry and fishing (72%) were most likely to report operating expenses had increased over the past four weeks, followed by Manufacturing and Accommodation and food services (both 55%) and Transport, postal and warehousing (49%).

  1. Proportion of responding businesses.
  2. Over the past four weeks.

Reason for operating expenses increasing

Businesses were asked to provide information on the factors or reasons why operating expenses had increased. A short list of options (including an ‘Other’ text field) was provided, and businesses could select multiple reasons.

Just under three quarters (71%) of businesses indicated fuel prices as a reason for the increase in operating expenses over the past four weeks (down 11 percentage points), followed by business overheads (65%, up 13 percentage points), freight or delivery costs (56%, down 2 percentage points), and input costs of other goods or materials used by the business (47%, down 3 percentage points).

  1. Proportion of businesses that reported an increase in operating expenses over the past four weeks. 
  1. Proportion of responding businesses that indicated operating expenses had increased over the past four weeks.

Expectation of operating expenses over the next four weeks

One third (33%) of businesses expected operating expenses to increase over the next four weeks, down 3 percentage points from May 2026. This was highest in Agriculture, forestry and fishing (50%, down 1 percentage point), Accommodation and food services (48%, down 2 percentage points), Wholesale trade (46%, up 8 percentage points) and Information media and telecommunications (43%, up 18 percentage points).

Business sentiment on ability to meet financial commitments

Businesses were asked to provide an indication on how difficult or easy it would be for the business to meet its financial commitments over the next four weeks. The responses provide a point in time indication of business sentiment based on the conditions experienced at the time that the business completed the survey.

In June 2026, more than one quarter (28%) of businesses expected it to be very difficult or difficult to meet their financial commitments over the next four weeks.

The top four industries reporting the highest proportion of businesses expecting difficulties in meeting financial commitments in the next four weeks were:

  • Accommodation and food services – 47%, down 1 percentage point
  • Information media and telecommunications – 47%, up 18 percentage points
  • Transport, postal and warehousing – 39%, down 17 percentage points
  • Agriculture, forestry and fishing – 38%, down 6 percentage points.

Small and medium businesses were more likely to have difficulties meeting financial commitments in the next four weeks (both 29%) compared to large businesses (17%).

Anticipated ability to meet financial commitments over the next four weeks(a)(b)(%)
 Small businessesMedium businessesLarge businessesAll businesses
Very difficult9828
Difficult20211520
Neither difficult nor easy48434147
Easy13192213
Very easy55145
Not applicable2122
Don't know4444
  1. Proportion of responding businesses.
  2. Examples of financial commitments include fixed operating costs, debt obligations, payroll costs, and supplier credit for materials or stock etc. 

Acknowledgement

The ABS would like to thank all businesses for their involvement in the survey. 

Data downloads

Business Conditions and Sentiments, June 2026

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