A sailboat can be seen in front of the Central Business District (CBD) of Wellington, New Zealand, July 2, 2017. REUTERS / David Gray
WELLINGTON, July 5 – New Zealand business confidence continued to deteriorate in the second quarter of this year as companies grappled with rising costs and higher interest rates, a think tank said Tuesday. private.
Net 65% of companies surveyed predicted a deterioration in general business conditions compared to 40% pessimism in the previous quarter, the New Zealand Institute of Economic Research (NZIER) Quarterly Business Opinion Survey (QSBO) showed.
He added that business confidence is now at its lowest level since the first quarter of 2020, when the COVID-19 pandemic was declared.
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On a seasonally adjusted basis, 62% foresee a worsening of company conditions, against 34% of pessimism recorded in the previous period. The survey capacity utilization measure fell to 93. On the same subject : Taiwan and the United States will hold trade talks on Monday.4%, from 97.1% in the previous quarter.
The services and construction sectors were the most negative in the June quarter. The construction sector faces strong capacity constraints and the service sector expects weaker demand as interest rates rise, NZIER said in its report.
A net 78% reported cost increases in the June quarter, he said. Despite the more shaky outlook for the New Zealand economy, inflationary pressures continued to intensify, the report said.
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Reporting by Lucy Craymer; Editing by Josie Kao and Lisa Shumaker
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