From creditorwatch.com.au: Business conditions weakened in January primarily due to a significant decline in the mining sector, with overall conditions dropping from +6 to +3, and profitability reporting its first negative reading since COVID.

Queensland and New South Wales reported the strongest business conditions, while Victoria experienced the weakest, influenced by shifts in population growth and sector exposure.

Despite rising labour costs and retail prices, easing capacity utilisation hints at potential reductions in inflationary pressures, allowing for modest interest rate cuts by the Reserve Bank of Australia in the coming months.