The global market turmoil triggered by US tariff announcements in April negatively impacted most forward-looking economic indicators, particularly business confidence and investment plans, according to the ANZ Business Outlook survey.

In April, business confidence dropped by 9 points to 49, while expected own activity fell 1 point to 48.

However, past own activity increased by 10 points to 11 from 1, and past employment increased by 8 points to 2 from negative 6.

Pricing and cost indicators suggest a margin squeeze due to ongoing cost pressures, with one-year-ahead inflation expectations at 2.65%.

The forecast for growth and the official cash rate was revised down due to stuttering high-frequency data and concerns about the global outlook due to the ongoing trade war between China and the US, and US administration policy moves.

"Time will tell whether the impact is lasting," says ANZ chief economist Sharon Zollner.