New Zealand ANZ Business Confidence fell from 34.7 to 22.9 in March. Own Activity Outlook fell from 29.5 to 22.5. Inflation expectations fell from 4.03% to 3.80%. Cost expectations rose from 73.5 to 74.6. Pricing intentions fell from 48.2 to 45.1. Profit expectations fell from 5.3 to -3.8. Wage expectations rose from 78.9 to 80.5. Employment intentions fell sharply from 6.2 to 3.5.
ANZ’s acknowledged the solid progress being made, such as narrowing current account deficit and downward trend in inflation. However, concerns are raised about “stickiness” of some inflation measures and persistent uncertainty around inflation outlook. The bank’s message emphasizes caution, stating, “It’s certainly too soon to declare victory. But eyes on the prize; we’re getting there.”
