Business conditions and confidence remained soft in Australia in April, reported NAB Economics, an arm of the bank NAB, on Tuesday.

In addition, Australian businesses reported declining profitability and less spending on plant and equipment in April, said NAB.

"Business conditions eased slightly in April, driven by weaker profitability. Confidence, on the other hand, improved, but remains in negative territory and below its long-run average," said NAB, citing results of its monthly business survey.

Business confidence in April remained subdued, although some sectors improved. "Business confidence rose 1 index point to (settle at) negative 1 index point in April. Confidence by industry was mixed, with a significant increase in confidence in manufacturing and smaller increases in wholesale, construction, and finance, property & business services," explained NAB.

Confidence was weakest in retail and wholesale, added NAB.

Australian business conditions declined by 2 index points to settle at positive 2 index points, "driven by a 4 point fall in profitability. Trading conditions eased slightly by 1 point, while employment intentions were steady," reported NAB.

Business conditions fell significantly in mining and transport, and utilities, reversing the large increases seen in March, said NAB.

Reported capex spending, that is outlays on plant and equipment to expand business operations, declined to an index of positive 1 in April from a positive 7 in March, a "sharp decline," noted NAB.

Business reported labor costs rose at a 1.6% quarterly rate in April, unchanged from March, although purchase costs rose at a 1.7% quarterly rate in April, up from 1.4% in March, said NAB.

Retail prices rose at a 1.4% quarterly rate in April, up from a 0.9% rate in March, reported businesses, said NAB.