New Zealand’s ANZ Business Confidence surged in August, reaching 50.6, the highest level in a decade, up from 27.1 in July. This sharp increase was accompanied by a notable rise in the own activity outlook, which jumped from 16.3 to a seven-year high of 37.1.
Breaking down the data, investment intentions climbed from -1.4 to 6.9, while employment intentions improved from -3.6 to 11.9. Profit expectations also saw a positive shift, moving from -3.6 to 8.0.
Cost expectations remained elevated, ticking up slightly from 68.2 to 68.3, and pricing intentions rose from 37.6 to 41.0. On a positive note, inflation expectations fell from 3.20% to 2.92%, finally falling within the RBNZ’s target band.
ANZ highlighted that the significant increases in confidence and activity expectations were already evident at the beginning of August. The responses collected after RBNZ’s Official Cash Rate cut did not significantly alter the overall results.
