The business conditions index decreased by 6pts to +15 index points, easing back from the historical highs seen in April. The business confidence index fell by 5pts to +6 index points, to be around its long-run average level.

Conditions eased in most industries in May, with the exception of transport & utilities and retail but overall conditions remain at or above average levels. In trend terms, conditions remain strongest in mining.

According to Alan Oster, NAB Group Chief Economist "Despite the easing in the business conditions index in May, conditions remain robust in the business sector. Conditions remain well above average across most states and industries."