Business Confidence in New Zealand Declines in the First Quarter

The New Zealand Institute of Economic Research (NZIER) released its quarterly business opinion survey today (April 12) and found that business confidence and demand in New Zealand declined in the first quarter of this year.

According to a report by NZIER, 40% of the companies surveyed see a deterioration in the general business situation, compared with 28% in the previous quarter.

Seasonally adjusted, 33% of companies expect the business situation to deteriorate, compared with 35% in the previous quarter’s survey.

Capacity utilization in the industry rose to 97.1%, compared with 92.7% in the previous quarter.

Manufacturing is the least negative, but still faces a number of challenges due to the pandemic affecting the supply of goods.

56% of companies reported higher costs in the first quarter. Overall, companies have become more cautious in view of the severe labor shortage and strong cost pressure.

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