WELLINGTON (Reuters) – New Zealand business confidence hit its lowest level since 1974 in the fourth quarter of last year as businesses grappled with higher interest rates, cost pressures and weak demand, a private think tank said. said on Tuesday.
The New Zealand Institute of Economic Research’s (NZIER) Quarterly Business Opinion Survey (QSBO) shows a net 70% of surveyed businesses are facing a deterioration in general business conditions, compared with 42% of pessimism in the previous quarter. I expected to.
Business confidence is now at its lowest level since 1974, but on a seasonally adjusted basis it is the weakest since the survey began in 1970, he added.
On a seasonally adjusted basis, 73% expected business conditions to deteriorate, compared to 43% of pessimism recorded in the previous period. Survey capacity utilization decreased to 93.7% from 94.5% last quarter.
NZIER said the poll came after November’s central bank meeting was more hawkish than expected, weighing on sentiment.
Builders and retailers were the weakest in the December quarter. The NZIER report says companies have become more cautious and are now considering job cuts and investment plans.
A net 81% reported cost increases in the December quarter, it said.
Reporting by Lucy Kramer of Wellington Editing by Matthew Lewis
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