Here’s a summary of the article:
In the third quarter of 2023, New Zealand’s business confidence improved, with a net 43% of firms expecting better general business conditions, up from 8% in the previous quarter, according to the New Zealand Institute of Economic Research (NZIER). The survey, conducted from September 9 to 28, coincided with rising fuel prices due to escalating tensions between the US and Iran, but overall sentiment remained relatively stable.
On a seasonally adjusted basis, 40% of firms expected improvements compared to 14% earlier. Capacity utilization also increased to 91.0%. Despite businesses experiencing weak activity, there is optimism for the next quarter. NZIER noted a potential for higher fuel prices to contribute to inflation but does not anticipate further increases in cash rates this year. The Reserve Bank of New Zealand raised the cash rate to 2.75% in September, indicating cautious future tightening due to ongoing economic uncertainties.
