NZ business optimism grows, cost pressures remain high

Business sentiment improved despite weaker sales, shedding staff, and increased inflation pressures. A net 23% of respondents expect better economic conditions, up from 9% in December. Cost pressures rose, with 50% of firms facing increases and 42% expecting further rises.

By RNZ Business sentiment improved in the three months ended March despite weaker sales, staff cuts, and increased inflation pressures. The Institute of Economic Research’s closely followed quarterly business survey showed a net 23% of respondents think economic conditions will get better in coming months, compared to a net 9% in the December survey. Firms reported a decline in their own trading, down to a net 21% in the past quarter, from 24%.



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