FX.co ★ New Zealand Business Mood Slumps to 9-Month Low

In April 2025, New Zealand's ANZ Business Outlook Index experienced a significant downturn, plummeting to 49.3 from 57.5 the previous month, reaching its lowest point since July 2024. This decline was largely attributed to global market instability resulting from U.S. tariff announcements. Export intentions showed a decrease, dropping to 12.2 from 17.3, and pricing intentions also declined to 49.4 from 51.3. However, investment intentions remained consistent at 17.2 compared to 17.3, and there was an improvement in employment intentions, which rose to 18.1 from 15.6. Although forward-looking activity slightly decreased to 47.7 from 48.6, past activity saw a significant rebound, increasing to 11.3 from 0.8. Profit expectations remained relatively unchanged at 28.5 compared to 29.4, but cost expectations surged, reaching their highest level since September 2023, climbing to 77.9 from 74.1. Meanwhile, wage pressures remained high at 81.3 versus 80.0. Inflation expectations held steady at 2.65%, slightly above the previous 2.63%, but credit availability worsened, dropping to 18.2 from 23.7. Residential construction exhibited strength with a rise to 50.0 from 47.2, while commercial construction activity remained stable at 35.3, up from 33.3.