SYDNEY, Oct 12 (Reuters) - A measure of Australian business conditions slipped in September as long-running coronavirus lockdowns cut into sales and profits, though sentiment was boosted by the prospect of an imminent easing in restrictions.

Tuesday's survey from National Australia Bank (NAB) showed its index of business conditions fell 9 points in September to +5, taking it just below the long-run average.

Yet the survey's measure of confidence rebounded by 19 points to +13, as firms in New South Wales (NSW) looked forward to an easing of stay-at-home rules beginning this week. Victoria and Canberra should start opening up later in October.

"Businesses are really looking forward to reopening, and confidence increased markedly on the back of NSW and Victoria's reopening roadmaps," said NAB chief economist Alan Oster.

Confidence in NSW alone jumped 42 points in the month, while Victoria saw a rise of 16 points.

"Still, confidence is more about hope for the future than what is happening in the present," added Oster. "On that front, conditions really deteriorated which shows that lockdowns are taking a toll, despite the resilience the economy has shown."

The NAB survey's measure of sales halved in September to +10, with whole sectors of retailing shut in Sydney and Melbourne, while profitability fell 13 points to +2. The employment index fell 8 points to +1.

Capacity utilisation dropped to 78.4% in September, almost 7 percentage points down from its peak in April and a sign of considerable slack in the economy.

The Reserve Bank of Australia (RBA) has argued that the economy would likely recover once the lockdowns eased and forecast strong growth for next year.

"With NSW achieving its 70% vaccination target and further thresholds expected to be achieved in coming weeks, the economy is well placed to recover in October and November as activity is allowed to restart," said NAB's Oster. (Reporting by Wayne Cole; Editing by Kenneth Maxwell)