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New Zealand Business Confidence Increases; Remains Lower Than Pre-Middle East Conflict Levels

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Business confidence in New Zealand increased by 21 points in May, reaching +10, but still lower than pre-Middle East conflict levels, according to a report by ANZ released on Friday.

Expected own activity increased by 6 points to 25.6 from 19.6, while past own activity fell to 14.8 from 16.1, the report said.

The net balance of firms reporting increased past activity decreased to 14.8 from 16.9, with agriculture showing growth compared to other sectors.

Meanwhile, the net percent of firms reporting higher employment fell to -5.2 from 3, and was lower for every sector.

Inflation indicators showed a slight decrease, with inflation expectations falling to 3.6% from 3.8% and pricing intentions dropping to 56.7.

Additionally, anticipated price and cost increases have also moderated slightly.

While some initial shock has worn off, businesses still face uncertainty as activity indicators remain considerably lower than before the Middle East conflict, per the report.

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