New Zealand Business Confidence Reaches Decade High

New Zealand's ANZ Business Confidence Index surged to 60.9 in September, marking the highest level since May 2014, driven by optimism about future economic conditions and improved trading expectations. The own activity outlook increased significantly, reflecting a net 45% of firms expecting better trading conditions over the coming year. Despite this positive sentiment, businesses continue to face challenges with weak turnover and recent job cuts, indicating that current trading conditions remain a concern. Inflation expectations stabilized at 2.92%, with firms planning to raise prices by an average of 1.6% in the next three months. The decline in wage growth and cost expectations is seen as favorable for the Reserve Bank of New Zealand (RBNZ), although inflationary pressures still need monitoring. Overall, the results suggest a potential for a quicker economic rebound, contingent on sustainable inflation management.