New Zealand Q1 Business confidence collapses to -25 (prior -2)

New Zealand Quarterly Survey of Business Opinion (QSBO) from the New Zealand Institute of Economic Research (NZIER)

• Business confidence -25%, prior -2%
• Capacity utilization 90.2%, prior 91.4%

Comments from NZIER (in brief, bolding mine):

• post-election bounce in business confidence and activity seen in the final quarter of last year was short-lived
• net 24 percent of businesses in the March quarter expect a deterioration in the general economic outlook over the coming months on a seasonally adjusted basis
• net 23 percent of firms reporting a decline in activity over the March quarter
• Overall, the results point to higher interest rates having their intended effects in dampening demand to reduce inflation pressures in the New Zealand economy.
• net 20 percent of financial services sector firms expect higher interest rates in a year’s time

Much more at that link above.

—

The highly regarded New Zealand Quarterly Survey of Business Opinion (QSBO) is conducted by the New Zealand Institute of Economic Research (NZIER) and is one of the country’s longest-running business surveys. It provides a insights into the business climate and economic conditions in New Zealand, and the factors influencing business sentiment, such as domestic and international economic conditions, government policies, and other external events.

• surveys businesses across various sectors
• gathers data on business confidence, demand, hiring intentions, investment plans, and other economic indicators
• QSBO findings can vary significantly from one quarter to another

This article was written by Eamonn Sheridan at www.forexlive.com.