New Zealand business confidence rises in third quarter despite soft demand

by@business

Summary

In the third quarter of 2026, New Zealand business confidence increased, with more firms planning to hire and invest despite ongoing softness in demand for their goods and services, according to a recent survey. This uptick in sentiment comes after firms had reported weaker activity, indicating an improvement in their expectations for economic conditions ahead. Although rising fuel prices due to international conflicts have introduced some uncertainty, they seem to have had a minimal immediate effect on overall business outlook.

Analysis

New Zealand: New Zealand is a South Pacific country with a developed, open economy focused on exports, agriculture, and tourism. The latest Quarterly Survey of Business Opinion from the New Zealand Institute of Economic Research highlights a rebound in business sentiment during the third quarter, with firms expressing greater optimism about upcoming conditions. This development occurs against a backdrop of soft current demand and external pressures such as geopolitical tensions. Business Sentiment: Firms report improved expectations for general economic conditions in coming months following a period of weaker activity. Geopolitical Factors: Recent surges in fuel prices linked to international conflicts have added uncertainty but appear to have had a limited immediate impact on sentiment.

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macro

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