NZ Business Confidence Holds Firm Amid Oil Price Surge

New Zealand business confidence held steady in August, according to the ANZ Business Outlook survey, despite renewed hostilities in the Middle East pushing oil prices higher.

The survey reported that business confidence eased two points to 54, while expected own activity dipped one point to 48. However, past activity jumped six points to 16, its strongest reading since April, led by the services sector.

Westpac senior economist Michael Gordon noted that firms appeared largely unfazed by the renewed conflict, saying they 'have weathered the disruptions reasonably well.'

The survey also showed that inflation expectations ticked up to 3.26% in August, with more firms expecting to raise their own prices. Wage expectations crept higher as well, reaching 2.62%, their strongest reading since March.