Business confidence in New Zealand has plummeted to negative territory as firms grapple with rising costs and economic uncertainty, according to the latest ANZ Business Confidence Survey released on April 30, 2026.
The survey shows that business confidence dropped from a net 32.5 percent in March to minus 10.6 percent in April. This stark shift highlights a growing apprehension among businesses about the economic outlook.
Key findings:
- Inflation expectations for the year ahead rose from 3.1 percent to 3.8 percent.
- The ANZ-Roy Morgan Consumer Confidence index fell 11 points in April to 80.3, marking its lowest reading in approximately three years.
- Perceptions of current personal financial situations fell 11 points to a net -31%, the weakest reading since mid-2008.
- The future conditions index dropped from 96.7 to 85.9, its lowest in two years.
- The current conditions index decreased from 83.1 to 71.9, the weakest since October 2023.
- The net proportion of households viewing now as a good time to buy a major household item fell to -25, its lowest since September 2024.
Sharon Zollner, chief economist at ANZ, commented on the situation, stating, “It’s a response to uncertainty to maybe defer risky decisions – and investing or employing someone are both risky decisions to make.” She attributed much of this decline to external factors like the recent oil price shock affecting household budgets directly through petrol prices and indirectly through broader concerns about job security.
The scale and speed of this confidence collapse is notable; a drop of over twenty points in just two months indicates a shock response rather than a gradual deterioration. Observers suggest that the pressure on budgets is coming through the cost of living, which has yet to fully play out.
