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New Zealand business confidence dropped in September due to weak demand, declining activity, and job cuts, signaling potential rate cuts.
Business confidence in New Zealand fell in the September quarter, with only 15% of firms expecting better economic conditions—down from 26% in June—due to weak demand and declining activity.
A net 14% reported reduced business activity, 63% cited weak demand as a major constraint, and nearly a quarter cut staff.
Investment intentions weakened, with more firms planning to reduce spending on plant, machinery, and buildings.
Despite ongoing cost pressures, retailers and services firms remained relatively optimistic, citing expectations of lower interest rates.
The data, closely watched by the Reserve Bank, supports expectations of a 25 or 50 basis point rate cut, as the economy’s recovery remains fragile.
La confianza empresarial de Nueva Zelanda cayó en septiembre debido a la débil demanda, la disminución de la actividad y los recortes de empleos, lo que indica posibles recortes de tasas.