New Zealand skyline

New Zealand Business Confidence March 2023

New Zealand: Business sentiment virtually unchanged in March

The ANZ bank business outlook indicator dipped in March. As a consequence, a net 43.4% of firms reported that they expect general business conditions to worsen in the year ahead, down from a net 43.3% of firms expecting bleaker general business conditions in the year ahead in February. As a result, the headline remained entrenched below the net-0% threshold that separates pessimism from optimism among businesses.

Business grew more downbeat with regards to export, investment and employment intentions.

Meanwhile, firms’ outlooks regarding their own activity—a metric which has a stronger correlation to GDP growth—rose to a net minus 8.5% in March from a net minus 9.2% in February.

Commenting on the release, Sharon Zollner, chief economist at ANZ, stated:

“Firms are wary but hanging in there. So far, though it’s early days, you’d have to say things do look like a soft landing – activity indicators are subdued but off the floor, labour market tightness is starting to shift, and inflation and cost indicators are very gradually easing. That’s not to say it’s an easy environment – expected profitability is under pressure as firms navigate still-high cost inflation and uncertain future demand. The winter could expose a few more rocks as the wave of tourists depart. But for now, the slowdown is looking broadly in line with the Reserve Bank’s intentions.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest