New Zealand’s ANZ Business Confidence index improved modestly in August, rising to 49.7 from 47.8. However, firms’ Own Activity Outlook slipped to 38.7 from 40.6. Sector pressures also persisted, with reported employment in construction falling sharply.
Inflation indicators eased further. The share of firms expecting to raise prices in the next three months fell to 43%, while cost expectations edged down to 74%. One-year inflation expectations also dipped to 2.63% from 2.68%. Wage growth expectations 12 months out softened to 2.4% from 2.5%.
ANZ said the survey aligns with the RBNZ’s updated view that the economy requires “a little more support” to ward off downside risks. While confidence is stabilizing, the recovery will unfortunately “not come soon enough for some”.
