Kiwi Business Confidence Rises Despite Weak Domestic Demand

September’s Quarterly Survey of Business Opinion revealed a divergent view in the Kiwi economy: business activity was down, but business owner confidence is up. While cost and price pressures eased, businesses expressed strong intentions to hire and invest in the coming months. Separately, the US saw imports of semiconductors and other goods drive a larger trade deficit in August, and the Federal Reserve’s meeting minutes indicated a mildly less hawkish outlook.

The Kiwi economy is navigating weak domestic demand while labor demand appears to be growing, as suggested by difficulty finding skilled and unskilled workers. This occurs against a backdrop where central banks are monitoring global stability, with the movement of the kiwi dollar affecting exporter earnings.

Central banks are gauging global economic stability, with the kiwi dollar movement specifically affecting exporter earnings.