New Zealand Business Sentiment Falls from 5-Month High

New Zealand’s ANZ Business Outlook Index slipped to 53.7 in August 2026 from July’s five-month peak of 56.1. Expected own activity eased (48.2 vs 49.3 in July), but remained at a historically strong level, while assessments of past activity strengthened (16.4 vs 9.7). Forward-looking indicators were mixed: export intentions improved (31.4 vs 26.6), and employment intentions rose (19.3 vs 18.1), while profit expectations fell (23.1 vs 28.7) and investment intentions edged down (22.1 vs 22.8). Meanwhile, cost pressures showed signs of intensifying, with pricing intentions rising (51.0 vs 47.2), cost expectations climbing (80.8 vs 78.2), and wage growth expectations edging up (2.62% vs 2.52%). Inflation expectations also increased (3.26% vs 3.14%), suggesting persistent price pressures. Credit availability improved (2.4 vs 1.4). Sectoral sentiment weakened, particularly in commercial construction (24.6 vs 29.3) and residential construction (15.5 vs 27.0).

New Zealand’s ANZ Business Outlook Index surged to 56.1 in July 2026 from 36.6 in the previous month, marking the strongest reading since February. Firms’ own activity outlook strengthened markedly (49.3 vs 36.9 in June), while assessments of past activity edged higher (9.7 vs 9.0), supported by easing oil prices as tensions in the Middle East continued to subside. Forward-looking indicators rose, with stronger export intentions (26.6 vs 18.1), profit expectations (28.7 vs 13.0), investment intentions (22.8 vs 16.5), and employment intentions (18.1 vs 9.4). At the same time, pricing intentions (47.2 vs 50.7), cost expectations (78.2 vs 84.7), and inflation expectations (3.14% vs 3.36%) all moderated, while wage growth expectations were broadly steady (2.52% vs 2.53%). Further, credit availability turned positive (1.4 vs -1.9). Sectoral sentiment strengthened notably in construction, with confidence rising in both residential (42.5 vs 25.0) and commercial construction (48.9 vs 28.9).

New Zealand’s ANZ Business Outlook Index surged to 36.6 in June 2026 from 10.0 in the previous month, marking the highest reading since February. Firms’ own activity outlook strengthened sharply (36.9 vs 25.6 in May), though past activity eased (9.0 vs 14.8) amid oil price shocks tied to Middle East tensions. Forward-looking indicators were broadly stronger, with higher readings for export intentions (18.1 vs 11.5), profit expectations (13.0 vs 2.0), investment intentions (16.5 vs 5.8), and employment intentions (9.4 vs 3.4). Pricing intentions (50.7 vs 56.7), cost expectations (84.7 vs 90.4), and inflation expectations (3.36% vs 3.63%) all increased, although wage growth expectations edged up (2.53% vs 2.48%). Meanwhile, cost expectations eased (84.7 vs 90.4), and credit availability improved markedly (-1.9 vs -17.5). Sentiment was better across the construction sector, with a climb in both residential construction (25.0 vs 11.8) and commercial construction (28.9 vs 13.5).