New Zealand Business Confidence Holds High as Inflation Signals Turn Mixed

Wellington, New Zealand, 31 August 2026 – New Zealand businesses remain broadly optimistic, although the latest confidence survey shows a small pullback and a renewed rise in inflation expectations. Headline confidence fell two points to 54 in August, while firms’ expectations for their own activity declined one point to 48. Both readings remain high by historical standards and point to continued expansion despite a challenging cost environment.

The survey’s backward-looking measures were more encouraging. Reported past activity rose six points to 16, led by the services sector, suggesting that the recovery is becoming more visible in current trading conditions. A stronger reading for realised activity can be more informative than sentiment alone because it reflects actual demand. The improvement may support hiring, investment and cash flow if it persists through the coming months.