New Zealand data: Q2 business confidence -63% vs. -66% in the prior quarter

News

Quarterly Survey of Business Opinion (QSBO) from the New Zealand Institute of Economic Research (NZIER)

The twin headlines are confidence and acidity:

Business confidence in Q2 comes in at -63%

  • prior -66%

Business Own Activity comes in at 13%

Also, Capacity Utilization comes in at 81.7%

  • prior 94%
  • NZIER adds “cost pressures for firms intensified over the June quarter compared to the previous quarter. Meanwhile, the proportion of firms which increased their prices remained roughly the same. But with a weaker outlook for demand, a smaller proportion of firms expect to increase their prices in the next quarter. This suggests that the weakening demand is having some impact on inflation pressures, as it limits the extent to which firms can increase prices.”

While the NZIER QSSBO report is gated, there is a useful summary here:

Background to this is here:

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