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New Zealand business confidence jumps in September quarter
The survey showed firms became more optimistic about the general economy, even as reported domestic trading activity slipped and weak demand stayed a key constraint.
Action Forex reports that New Zealand business confidence strengthened sharply in the September quarter, with the share of firms expecting improvement in the general economic outlook rising from a net 14% to a net 40%, on a seasonally adjusted basis.
The outlet said the sentiment lift outpaced changes in firms’ own conditions, with a net 1% increase turning into a net 1% decline in domestic trading activity over the quarter, while activity expectations for the next three months improved from 11% to 15%.
According to Action Forex, NZIER attributed the optimism to easing cost pressures, despite renewed US-Iran conflict and higher global oil prices, and noted that weak demand remained the main constraint for businesses.
Action Forex added that forward indicators improved, with firms moving toward planning higher investment in buildings, plant and machinery, hiring intentions improving even as a net 5% reported staff reductions in the quarter, and retailers showing particular optimism, including a net 57% expecting better general economic conditions.