New Zealand’s business confidence dropped to its lowest level in nearly three years in the second quarter on softening demand conditions, the New Zealand Institute of Economic Research’s Quarterly Survey of Business Opinion showed Tuesday.
The survey showed that the New Zealand economy is losing momentum in the second quarter.
The drop in activity indicators in the June quarter points to annual growth remaining below 3 percent over the coming year, dropped significantly from the 3.5 percent annual growth seen at the end of last year, the agency said.
On a nationwide basis, a net 13 percent of firms still expect a further improvement in their trading activity over the next quarter.
Despite easing business, capacity utilization among manufacturers and builders rose to a record high in the three-month period to June. Inflation expectations remained low at the end of June quarter.
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