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flag New Zealand business confidence dropped in September due to weak demand, declining activity, and job cuts, signaling potential rate cuts.

flag 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. flag A net 14% reported reduced business activity, 63% cited weak demand as a major constraint, and nearly a quarter cut staff. flag Investment intentions weakened, with more firms planning to reduce spending on plant, machinery, and buildings. flag Despite ongoing cost pressures, retailers and services firms remained relatively optimistic, citing expectations of lower interest rates. flag 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.

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