New Zealand Business Confidence Reaches 10-Year Peak in ANZ Survey

New Zealand's business confidence has reached its highest level in a decade, as indicated by the latest ANZ Bank survey for August. The survey showed a net 50.6% of respondents expect the economy to improve in the next year, up from 27.1% in July. This surge in optimism follows the Reserve Bank of New Zealand's (RBNZ) decision to cut the Official Cash Rate (OCR) earlier than anticipated, citing a slowing economy.

In addition to the rise in overall business confidence, the survey revealed that a net 37.1% of businesses expect their own activity to grow over the next 12 months, marking a seven-year high. Pricing intentions also saw an increase, with 41% of firms planning to raise their prices in the next three months. However, inflation expectations dipped below 3% for the first time since mid-2021, falling within the RBNZ's target band. Despite mixed activity levels across sectors, with construction lagging, the general sentiment indicates a more positive economic outlook.