The New Zealand Institute of Economic Research (NZIER) released its latest Quarterly Survey of Business Opinion (QSBO) data today, revealing a decline in capacity utilization. In the second quarter of 2024, capacity utilization has decreased to 88.7%, down from the 90.2% reported in the first quarter of 2024.
This downward shift is indicative of a potential slowing in economic activity within the nation. The capacity utilization rate measures the extent to which businesses are using their production capacity, and a drop suggests that companies may be experiencing lower demand or scaling back their operations.
Given that the previous indicator had peaked at a robust 90.2%, the latest figure represents a notable reduction. Analysts and policymakers will be closely watching this metric and other economic indicators in the subsequent quarters to gauge the broader impacts on New Zealand's economy. The data update was released on 01 July 2024, providing timely insights for financial analysts and investors.
