New Zealand Business Sentiment Hits 5-Month High

New Zealand’s ANZ Business Outlook Index rose to 49.7 in August 2025 from 47.8 in the previous month, marking its third consecutive monthly gain and the highest level since March.

The uptick reflects optimism amid the Reserve Bank’s dovish stance on interest rates.

Export intentions edged up (16.6 vs 14.6 in July), alongside modest gains in investment intentions (20.2 vs 19.7) and credit access (16.9 vs 15.0).

However, employment intentions fell slightly (10.5 vs 11.8), as did profit expectations (15.2 vs 17.0) and cost expectations (74.0 vs 75.9).

Pricing intentions (42.5 vs 43.5) and wage growth expectations (2.4% vs 2.5%) also eased.

Inflation expectations remained steady (2.63% vs 2.68%).

Meanwhile, broader activity indicators weakened, amid a slight drop in activity outlook (38.7 vs 40.6) and a sharp fall in past own activity (1.3 vs 5.9).

Notably, residential construction intentions surged (26.8 vs 16.7), partially offset by a slowdown in commercial construction (25.0 vs 28.9).