ANZ New Zealand Business Survey

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ANZ remarks on the results:

Business people appear to have come back from holiday in slightly better spirits. Some of the shock value of the November rate hike and talk of a “deliberately engineered” recession appears to have worn off, though most indicators remain at very subdued levels.

The key themes of the January survey:

  • Activity measures generally saw a partial bounce-back from their December falls, led by manufacturing, services and retail.
  • Inflation and pricing pressures remain intense. Both cost expectations and pricing intentions moved higher (costs by more, suggesting worsening margin squeeze).

Inflation expectations remain stuck around 6% (figure 2).

New Zealand inflation expectations 27 January 2023

NZD/USD is up a few tics after the data. Just a few tics though, not a lot in it.

Better confidence is projected ahead: