The New Zealand Business Confidence fell 25% QoQ in the first quarter (Q1) of 2024 from a 2% decline in the Q4 of 2023, the Quarterly Survey of Business Opinion (QSBO) from the New Zealand Institute of Economic Research (NZIER) showed on Tuesday. 

Additional takeaways

“Post-election bounce in business confidence and activity seen in the final quarter of last year was short-lived.”

“Net 24 percent of businesses in the March quarter expect a deterioration in the general economic outlook over the coming months on a seasonally adjusted basis.”

“Net 23 percent of firms reporting a decline in activity over the March quarter.”

“Overall, the results point to higher interest rates having their intended effects in dampening demand to reduce inflation pressures in the New Zealand economy.”

“Net 20 percent of financial services sector firms expect higher interest rates in a year’s time