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Business Confidence in New Zealand Turns Negative in April, ANZ Says

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Business confidence in New Zealand turned negative in April, falling to minus 10.6 from 32.5 in the previous month, as inflation indicators continued to trend higher, ANZ Research said in a Thursday report.

"Firms are understandably concerned about the outlook for their activity and profitability in the face of this significant cost shock," the research firm said, adding that it remains a "very challenging time" to run a business.

However, the negative 10.6 reading is higher than the minus 22.5 average seen in late-March responses, indicating that at least some of the initial confidence shock has waned.

Inflation expectations rose to 3.8% in April from 3.1% in March, but pricing intentions did not rise any further, which should be somewhat reassuring for the Reserve Bank of New Zealand, ANZ Research said.

Reported past activity, the best indicator of GDP in the survey, was steady in April.

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