The federal government’s tough budget talk has not dampened business confidence in the Australian economy.

National Australia Bank’s monthly survey has found business confidence in April was up marginally by two points, returning to long-run average levels after its low in March.

But business conditions fell to zero in April, from positive one point in March, due to sluggish business activity, the survey shows.

“The rise in confidence was a little surprising given negative rhetoric about a ‘tough budget’,” the bank’s chief economist Alan Oster said.

Sales eased slightly, employment (was) slightly better but still soft, profits weaker.

Conditions remain volatile and mixed across industries with mining and wholesale businesses facing the biggest challenges, NAB found.

Despite a strong improvement in wholesale conditions, the number of forward orders fell sharply.