New Zealand business confidence improved modestly in Q2, with a net 22% of firms expecting better conditions ahead, up from 19% in Q1, according to NZIER’s quarterly survey.
Inflationary pressure appears to be cooling. 1% of firms reported price cuts in Q2, a sharp turnaround from the 8% that raised prices in Q1.
The report pointed to a continued “divergence between firms experiencing weak demand and firms expecting a recovery in demand”, underlining an uneven domestic outlook despite improved sentiment.
NZIER said the effect of interest rate cuts since last August has yet to fully feed through to real activity, despite supporting sentiment.
