New Zealand businesses experienced a significant dip in confidence as per the National Bank of New Zealand’s (NBNZ) latest Own Activity Indicator. The indicator, updated on May 29, 2025, has shown a steep decline from the previous month, falling from 47.7% in April to 34.8% in May.
The noticeable drop unveils growing concerns in the country’s economic landscape, indicating that businesses are wary of the upcoming economic challenges. The decline might suggest reduced economic activity or potential challenges within New Zealand’s business environment, leading companies to be more conservative in their outlook.
Economic analysts are closely monitoring this trend, as it might have broader implications for New Zealand's growth projections. The drop in the Own Activity Indicator suggests that businesses might be anticipating or experiencing hurdles such as decreased consumer demand or rising operational costs, which could impact future economic performance. Stakeholders and policymakers will be keen to address the concerns that might be underpinning this shift, ensuring stability and revitalized confidence in the market.
