Received

Businesses remain relatively resilient to economic challenges although the conditions for doing business are expected to deteriorate as the full force of higher interest rates take effect.

The monthly business survey by NAB showed business conditions slipping one point to 17 index points, which is still a "very strong" result compared to historical averages.

But confidence in the Australian business community did sink below zero in the February report, falling 10 points to -4 points.

The confidence indicator lifted into positive territory in January.

Conditions remained elevated across industries and states, with trading conditions and employment holding steady, at 27 and 12 index points respectively, while profitability sunk four points to 14.

Robust conditions were reported across different industries and jurisdictions, with consumer-facing industries, like retail, doing better than business-facing sectors, such as mining and construction.

Leading indicators did ease slightly, however, with forward orders falling three points to 3 index points. Capacity utilisation also dipped but remains elevated at 85.2 per cent.

NAB chief economist Alan Oster said there were mixed signals around prices in the February survey, with labour costs picking back up to 2.8 per cent in quarterly terms from December lows and purchase cost growth remaining elevated at 3.1 per cent despite easing global pressures.

"Prices growth does appear to be easing in retail as global supply issues resolve," Mr Oster said.

"However, our survey shows little evidence of easing in services prices for consumers, which remains a key focus for the RBA."

Mr Oster said the survey confirmed the ongoing resilience in the economy.

"Though we continue to expect a more material slowdown in demand later in the year when the full effect of rate rises has passed through."

The NAB business report was flagged by the Reserve Bank last week as one of four key data sources of interest ahead of the April cash rate decision.

The central bank hiked again in March but softened its language in accompanying communications and suggested it was getting closer to pausing its tightening cycle.

The March interest rate rise spooked consumers and drove confidence down to its lowest point since the early days of the COVID-19 pandemic.

ANZ and Roy Morgan's weekly measure of consumer sentiment sunk 2.9 points last week to 77, well below the monthly average of 111.6 over the past three decades.

The weekly barometer of consumer sentiment is now at its lowest point since April 2020.

Westpac and Melbourne Institute's monthly index also held near historical lows, remaining unchanged at 78.5 in March

Westpac chief economist Bill Evans said sub-80 readings were rare, especially two in a row.

"Indeed, both the COVID shock and the Global Financial Crisis saw only one month of sentiment at these levels," he said.

© AAP 2023

A police manhunt in a Queensland town has ended after an armed assailant was found dead.

Police made an emergency declaration at 10pm on Monday after reports of an armed person in the town of Warwick, southwest of Brisbane.

Specialist police entered a residence about 8.15am on Tuesday, and a 38-year-old man was located deceased.

No shots were fired, and no threats were made.

A report will be prepared for the coroner.

The emergency declaration was Queensland's second in two days after a near 10-hour siege in Townsville that ended on Monday morning.

A 50-year-old man was found dead in a Kirwan home after firing several shots that hit nearby houses and the vehicles of responding officers.

© AAP 2023

Australia will command a fleet of eight nuclear-powered submarines within the next three decades under a fast-tracked plan that will cost up to $368 billion.

Canberra will acquire three US Virginia-class nuclear submarines as a stop-gap from 2033 before a new-generation hybrid sub comes into production in a bid to deter Chinese aggression in the Indo-Pacific.

There is then the option to buy two more of the US boats in order to protect against schedule blowouts.

Prime Minister Anthony Albanese said the agreement was the single biggest investment in Australia's defence capability and would ensure the nation's security for decades to come as part of the AUKUS alliance.

"What the United States, the United Kingdom and Australia hold in common is more fundamental and more universal than our shared histories," he said as he announced the plan at Point Loma naval base in San Diego.

"We are bound, above all, by our belief in a world ... where peace, stability and security ensure greater prosperity and a greater measure of fairness for all."

US President Joe Biden said the Indo-Pacific would be where the three nations' futures were written.

"Forging this new partnership, we're showing again how democracies can deliver our own security and prosperity and not just for us but for the entire world," he said.

The new-generation submarines will be based on the British Astute class but integrated with an American weapons system and technology.

"Top-of-the-line submarines are the vanguard of US naval power," Mr Biden said.

"We're putting ourselves in the strongest possible position to navigate the challenges of today and tomorrow, together."

UK Prime Minister Rishi Sunak added the three navies would operate and maintain the boats together.

"For the first time ever, it will mean three fleets of submarines working together across both the Atlantic and Pacific, keeping our oceans free, open and prosperous for decades to come," he said.

The cost to taxpayers of the trilateral deal will come in at an eye-watering $268-$368 billion over the coming three decades.

The plan will take $9b from the budget's bottom line across the next four years and $50-58b within a decade.

However the initial outlay won't add to Australia's deficit as $6b will be redirected from existing provisions for the cancelled French submarine contract and $3b in defence department funds will be set aside.

An American submarine for Australia will roll off the production line every three years before the new AUKUS class will be built at a similar rate from 2042. The sale will need approval from the US Congress.

Defence Minister Richard Marles says he's confident there will be bipartisan support from Washington.

"The US alliance has thrived under successive administrations and governments in Australia since the Second World War," he said.

"Across the political spectrum, there is complete support for the relationship with Australia and the AUKUS arrangements. So we enter this with a high degree of confidence."

The UK will construct and operate the first AUKUS submarine from the late 2030s, allowing any kinks to be ironed out before Australia gets behind the periscope.

"The prototyping risk is being assumed by the UK," Defence Industry Minister Pat Conroy said.

"We've de-risked this and will continue to de-risk this project."

Four American nuclear-powered submarines and one UK vessel will begin rotating through Western Australian naval bases from as early as 2027 to boost Australia's ability to operate its own vessels in the 2030s and 2040s.

Increased visits from US and UK nuclear submarines will also begin from next year.

Shipbuilders in Adelaide and Western Australia will join those in America and Britain in constructing the new submarines, with shipyard upgrades to begin this year.

Radioactive waste will be managed in Australia, which has drawn environmental protests.

© AAP 2023