New Zealand’s ANZ Business Outlook Index dropped sharply to -10.6 in April 2026 from 32.5 in March, marking the first negative reading since August 2023, as the conflict in the Middle East weighed on business sentiment. Firms’ own activity outlook deteriorated significantly (19.6 vs 39.3), while reported past activity was largely steady (16.9 vs 17.5).
Forward-looking indicators weakened across the board: export intentions fell markedly (1.1 vs 15.2), profit expectations swung into negative territory (-13.3 vs 19.7), and investment intentions declined (3.3 vs 14.5). Employment intentions also turned negative (-2.7 vs 9.4), and wage growth expectations moderated (2.41% vs 2.74%).
Price-setting indicators were mixed. Pricing intentions eased somewhat (57.7 vs 60.3), yet cost pressures intensified (90.4 vs 84.7). Credit availability deteriorated sharply (-21.5 vs -3.3), pointing to tighter financial conditions, while inflation expectations climbed to their highest level since February 2024 (3.81% vs 3.08%).
Sentiment across key sectors also softened, including residential construction (11.8 vs 35.3) and commercial construction (27.0 vs 42.1).
