Business confidence in Australia was up in May despite easing conditions amid falling employment and weak profitability, according to a survey by the National Australia Bank (NAB) published Tuesday.

The NAB business confidence index ticked up 3 points to 2 index points, with sentiment improving in all sectors except manufacturing, mining, and wholesale. Trend-wise, retail and wholesale remain the least confident industries.

Meanwhile, the NAB business conditions index eased 1 point to 0 index points, led by a drop in employment. Profitability remained negative, while trading conditions also eased.

Conditions declined across most industries, led by retail and manufacturing, while mining and transport rebounded sharply. Trend-wise, mining and recreation remain strongest, with manufacturing and retail weakest, per the report.

Capacity utilization climbed above its long-term average as forward orders and capex increased, while purchase cost growth eased, labour costs rose slightly, and product price growth slowed in May, the report added.