Non-mining economy losing steam: NAB

National Australia Bank has warned that falling business confidence and conditions could be a sign the recovery of the non-mining economy is faltering.

The non-mining economy could be running out of steam, a National Australia Bank business survey says.

NAB's latest reading of business around the country shows both confidence and conditions fell in October, even though both remained above long run averages.

"While conditions are still at above-average levels, if the recent trajectory continues we could be looking at an economy that is rapidly losing momentum," NAB chief economist Alan Oster said.