New Zealand Quarterly Survey of Business Opinion (QSBO)

Business Confidence and Capacity Utilization

The latest data from the New Zealand Institute of Economic Research (NZIER) shows that business confidence has decreased significantly, dropping to -25% from the previous quarter’s -2%. Additionally, capacity utilization has decreased to 90.2% from 91.4%.

Comments from NZIER:

The post-election bounce in business confidence and activity seen in the final quarter of last year was short-lived. A net 24 percent of businesses in the March quarter expect a deterioration in the general economic outlook over the coming months on a seasonally adjusted basis.

Impact on Individuals

Individuals may see a decrease in job opportunities and wage growth as businesses become more cautious. Consumer confidence may also be affected, leading to lower spending and economic growth.

Impact on World Economy

The decrease in business confidence and capacity utilization in New Zealand may have ripple effects on the global economy. International trade and investment may be impacted, leading to uncertainties in the global market.

Conclusion

The decline in business confidence and capacity utilization in New Zealand is a cause for concern, both for individuals and the global economy. It is important for policymakers to address the underlying issues and implement strategies to boost confidence and stimulate economic growth.