New Zealand Business Mood Rises from 10-Month Low

New Zealand’s ANZ Business Outlook Index climbed to 46.3 in June 2025, up from May’s ten-month low of 36.6. It marked the first increase in business sentiment since February, as the global tariff turmoil faded. Sub-indices improved across several categories: forward-looking activity (40.9 vs 34.8 in May), export intentions (13.9 vs 11.8), pricing intentions (46.3 vs 45.4), investment intentions (19.9 vs 11.6), profit expectations (16.7 vs 11.1), and employment intentions (10.8 vs 6.0). Cost expectations accelerated (79.0 vs 72.8), and wage pressures rose from their lowest level since August 2024 (76.1 vs 75.3). Inflation expectations held steady at 2.71%, while credit availability improved (15.9 vs 8.6). Residential construction strengthened (44.8 vs 36.4), and commercial construction activity rebounded from an eight-month low (28.1 vs 20.6). However, past own activity declined (2.3 vs 5.1), and past employment remained flat at -10—both still notably subdued.