FX.co ★ New Zealand Business Sentiment Falls to 3-Month Low

In January, New Zealand's ANZ Business Outlook Index fell to 64.1 from December's 73.6, reaching its lowest point since October, although overall sentiment remained upbeat. Expected own activity saw a decline, registering 51.6 compared to December's 60.9, while past activity also dipped slightly to 26.2 from 29.3, yet it hovered near its highest level since August 2021. Forward-looking indicators showed a weakening trend: export intentions decreased to 20.4 from 25.6, employment intentions dropped to 22.4 from 27.5, and profit expectations fell to 32.9 from 42.7. Concurrently, cost pressures rose to 77.8 from 76.1, and credit availability continued to tighten, moving down to 16.3 from 28.4. Conversely, pricing intentions increased to 56.5 from 51.7, anticipated wage growth inched up to 2.82 from 2.70, and investment intentions held steady at 28.3 compared to 28.1. Inflation expectations nudged up to 2.77% from 2.69%. Sector-wise, trends varied: residential construction intentions improved to 58.8 from 54.8, whereas commercial construction intentions declined significantly to 44.7 from 57.1.