New Zealand Q3 Business Confidence Jumps to Net 43%, NZIER Survey Shows

New Zealand's business confidence surged in the third quarter despite rising fuel prices and geopolitical tensions, the New Zealand Institute of Economic Research said on October 6. A net 43% of firms expected general business conditions to improve, up from 8% optimism in the prior quarter. On a seasonally adjusted basis, 40% anticipated improvement versus 14% previously. The survey, conducted September 9–28, coincided with a fuel price spike amid renewed US-Iran conflict. Capacity utilization edged up to 91.0% from 90.8%. NZIER Principal Economist Christina Leung noted a continued divergence between weak current activity and expectations for improvement ahead. NZIER said stabilizing cost and pricing indicators suggest only modest risk of fuel prices feeding into broader inflation. Leung said the think tank sees no need for further cash rate hikes this year. The Reserve Bank of New Zealand raised the cash rate 25 basis points to 2.75% in September and signaled more tightening, but stressed future moves would be measured.