Home / Business and Economy / NZ Business Confidence Soars to Record High
NZ Business Confidence Soars to Record High
13 Jan
Summary
- Business confidence reached its highest point since March 2014.
- Lower interest rates are seen as boosting economic recovery.
- Labour shortages are emerging in key sectors of the economy.
New Zealand's business confidence reached a decade-high in the fourth quarter, signaling a significant upswing in economic sentiment. A net 48% of firms surveyed now expect general business conditions to improve, marking the highest level of optimism recorded since March 2014. This widespread uplift in sentiment spans across all sectors and regions, indicating a broad-based recovery.
The survey suggests that recent interest rate cuts by the Reserve Bank of New Zealand are beginning to take effect, bolstering the economy. While the economy experienced growth in the third quarter after previous contractions, forecasts indicate a continued pickup in the coming year. However, emerging labor shortages in sectors like services, manufacturing, and building are also noted.
With contained inflation and recovering demand, economists predict no further cuts to the official cash rate. Instead, the Reserve Bank of New Zealand is expected to maintain the rate until it begins to increase it in the latter half of 2026. This positive outlook supports the notion that the central bank might raise rates earlier than previously anticipated.
