Business Confidence Remains High, Signaling Economic Recovery

Minister Willis highlighted the government’s recent progress, including taming inflation and the beginning of interest rate reductions.

Economic Growth Minister Nicola Willis has reaffirmed her confidence in New Zealand’s economic trajectory following the latest ANZ Business Outlook survey, which continues to show strong optimism among businesses.

The survey, released yesterday, indicates that while business confidence dipped slightly, it remains at elevated levels. Business confidence declined by eight points to +54 in January, while expected own activity eased four points to +46. Despite this, ANZ describes the shift as “easing, but still extremely high.”

Minister Willis welcomed the results, calling them a positive indicator that the economy is on track for improvement.

“This is another sign that the business outlook is on the right track. I’m pleased to see businesses feel more confident about the economy,” she said.

She acknowledged the economic challenges New Zealanders have faced, including high inflation, rising living costs, and steep interest rates, but pointed out that positive change is underway.

“New Zealanders are impatient for that change, and so am I. That’s why I am focused on driving economic growth to go further and faster.”

Signs of Recovery

Minister Willis highlighted the government’s recent progress, including taming inflation and the beginning of interest rate reductions. The ANZ survey aligns with recent findings from the New Zealand Institute of Economic Research (NZIER), which also indicates growing optimism in the business sector.

The survey’s findings suggest that firms anticipate an increase in their own activity, which is a leading indicator of future economic growth.

“Economic growth means more and better-paying jobs for Kiwis and creates community wealth, bringing in the revenue we need to pay for world-class infrastructure, health, and education services,” Willis said.

The government remains committed to policies that promote economic expansion, job creation, and a sustainable financial future for all New Zealanders.

With business sentiment remaining robust, policymakers are optimistic that 2024 will see continued progress toward a stronger, more resilient economy.