ANZ New Zealand Business Outlook

The latest ANZ New Zealand Business Outlook survey reports reduced business confidence. I spoke with ANZ Chief Economist, Sharon Zollner, who referred to the impact of interest rate increases as “sand in the gears” for the economy.

Overall, the full-month November survey results show relatively small changes compared to the preliminary result. Business confidence, export intentions, and investment intentions were all a little higher, but view of activity in their own firm, and capacity utilisation dipped. Overall, the theme continues to be gradually easing activity indicators but cost and inflation pressures remain extreme.

Businesses are experiencing cost pressures that are squeezing margins. Sharon explained how passing on costs increases will become more difficult for businesses as the interest rate rises cause consumers to be more price sensitive.

Watch the Sharon Zollner conversation with NZ Private Capital

Read the ANZ New Zealand Business Outlook