New Zealand NZIER Business Confidence declines 2% in 4Q 2023

The New Zealand Institute of Economic Research (NZIER) released their quarterly Business Confidence indicator for the fourth quarter of 2023, showing another 2% decline in headline business sentiment, though the figure represents a significant improvement from the previous quarter's -52%.

Key highlights

10% of firms expect a worsening of overall economic conditions, a significant decrease from the previous quarter's 49% negative outlook and 79% net negative the same time last year.

6% of surveyed firms reported an increase in trading activity on a seasonally-adjusted basis.

December's quarterly survey revealed an overall decline in labor shortages, owing to net migration inflows following the reopening of international borders.

Inflation indicators point to less firms reporting higher costs and increasing prices QoQ.

44% of surveyed firms expect an uptick in retail activity looking forward.

Manufacturing and services sectors remain downbeat overall.

Market reaction

The NZD/USD is trading into the 0.6200 handle in early Thursday trading after slumping to 0.6183 on Monday.

About New Zealand's NZIER Business Confidence

The NZIER Business Confidence released by the New Zealand Institute of Economic Research shows the business outlook in New Zealand. The Business Confidence allows analysis of economic situation in the short term. Increasing numbers indicates increases in business investment that lead to higher levels of output. Thus, a high reading is seen as positive (or bullish), while a low reading is seen as negative (or bearish).