14.07.202600:21:17UTC+00New Zealand Q2 Business Confidence Recovers: NZIER

New Zealand’s business confidence rebounded in the second quarter of 2026, with a net 12% of firms expecting the economy to improve over the next 12 months, compared with a net 4% that were pessimistic in the previous quarter, according to the New Zealand Institute of Economic Research’s Quarterly Survey of Business Opinion. The recovery in sentiment was underpinned by lower fuel prices during the survey period, following a tentative US–Iran peace agreement, although renewed tensions in the Middle East are expected to weigh on confidence ahead.

Despite the improvement, firms remained cautious. A net 10% reduced staff numbers in the quarter, and a net 1% and 3% plan to cut employment and investment, respectively, in the current quarter. Trading activity showed only a modest lift, with a net 1% of firms reporting stronger activity, although a net 10% expect gains in the coming quarter.

Cost pressures continued to build. A net 54% of firms reported higher costs and anticipate further increases, and the same proportion intends to raise prices. This combination signals ongoing, persistent inflationary pressure in the economy.