ANZ New Zealand Business Outlook: Activity measures decline as inflationary pressures emerge

Business Sentiment Remains High Despite Slight Decline

In February, business confidence dipped by 5 points, settling at 59, which still reflects a robust outlook. Most activity measures in the survey demonstrate continued strength.

• Inflation expectations showed mixed results. The proportion of businesses planning to increase prices over the next quarter dropped by 4 points to 53%, reversing about half of the previous month’s surge.
• The anticipated scale of price hikes softened slightly, moving from 2.1% to 2.0%.
• Wage growth expectations are on the rise, and 79% of firms foresee higher costs ahead—the highest level since July 2023.

Economic activity remains on an upward trajectory. Data on recent business performance, a key gauge for GDP, continues to signal momentum.