28.08.202501:32:11UTC+00New Zealand Business Sentiment Hits 5-Month High

In August 2025, New Zealand's ANZ Business Outlook Index increased to 49.7 from July's 47.8, marking its third consecutive month of improvement and achieving its highest point since March. This rise indicates growing optimism in light of the Reserve Bank's dovish approach towards interest rates. Export intentions saw an uptick, moving to 16.6 from 14.6 in July, accompanied by slight improvements in investment intentions, now at 20.2 compared to 19.7, and in credit access, which rose to 16.9 from 15.0. Nevertheless, there was a slight downturn in employment intentions, which decreased to 10.5 from 11.8, alongside a dip in profit expectations, down to 15.2 from 17.0, and cost expectations, which fell to 74.0 from 75.9. Pricing intentions slightly decreased to 42.5 from 43.5, and expectations for wage growth eased to 2.4% from 2.5%. Inflation expectations held steady at 2.63% compared to 2.68% previously. Meanwhile, broader activity indicators showed some softening, with a minor reduction in activity outlook, now at 38.7 from 40.6, and a notable decline in past own activity, dropping to 1.3 from 5.9. It's important to highlight that residential construction intentions significantly increased to 26.8 from 16.7, even as commercial construction experienced a slowdown, moving to 25.0 from 28.9.