New Zealand Business Confidence Declines Amidst Weakening Activity, ANZ Survey Shows

Business confidence in New Zealand experienced a notable decline in March, reflecting a growing concern over weakening activity indicators and a slight decrease in inflationary pressures, according to a survey conducted by ANZ Bank released on Thursday.

The survey revealed a significant shift in sentiment, with the headline measure indicating that a net 22.9% of respondents anticipate an improvement in the economy over the coming year. This marks a considerable decrease from the 34.7% level of optimism recorded in the previous survey conducted in February.

Moreover, the survey indicated that a net 22.5% of respondents expect their own businesses to expand in the next 12 months, down from 29.5% reported in the previous month.

ANZ Bank highlighted that the overall trajectory of the economy aligns with the path outlined by the Reserve Bank of New Zealand. Despite the challenges indicated by the survey results, ANZ remains cautiously optimistic, noting, “The good news is making solid progress. It’s certainly too soon to declare victory. But eyes on the prize; we’re getting there.”

This shift in sentiment underscores the complexities facing businesses in New Zealand amid ongoing economic uncertainties and evolving market conditions. As businesses navigate these challenges, monitoring indicators such as business confidence becomes crucial in assessing the trajectory of the economy and informing strategic decision-making.