New Zealand's business confidence improves in second quarter, easing inflationary pressures

From Yahoo Finance: 2025-06-30 19:19:00

New Zealand’s business confidence improved in the second quarter, with a net 22% of firms expecting general business conditions to improve, up from 19% in the previous quarter, according to the NZIER. Capacity utilization fell to 89.4%, with cost and pricing indicators suggesting easing inflationary pressures in the June quarter.

The effects of lower interest rates remain slow to boost real activity, despite increased confidence. A net 1% of firms reported reducing prices in the June quarter, indicating contained inflation in the near term. The NZIER’s forecast of 2.4% inflation in the second quarter may face downside risks.

New Zealand’s central bank, which has cut the cash rate by 225 basis points since last August, may see further rate cuts in 2025. The results of the survey suggest another 25-basis point official cash rate cut in this cycle, according to Principal Economist Christina Leung.



Read more at Yahoo Finance: New Zealand second-quarter business confidence improves, think tank says