New Zealand: Business confidence slumps in May
Latest reading: Business confidence came in at 36.6 in May, down 49.3 in April. May’s result marked the weakest since July 2024, and was likely linked to elevated global trade tensions.
Moreover, reported past activity—which has the strongest correlation with GDP—fell from 11 to 5, but remained in positive territory.
Panelist insight: ANZ Bank analysts, who compiled the business sentiment survey, said:
“The main messages coming out of our Business Outlook survey are that the economy is recovering, but that it’s still hard going here and now, and that it’s still difficult to pass cost increases through to prices.”