Fuel Costs Hit Business Confidence as Housing Market Continues to Fall
Business confidence in New Zealand took a hit in late September due to rising fuel costs, according to ANZ's Business Outlook survey. The survey found that experienced employment - a key indicator of hiring intentions - fell sharply towards the end of the month. This decline suggests that businesses are becoming increasingly cautious about expanding their workforce.
The Reserve Bank is still expected to raise the Official Cash Rate again on October 28, despite the lack of inflation pass-through and signs of spare capacity in the labor market. The median dwelling value dropped for the sixth consecutive month in September, with a median price of $797,078 - a 1.33% decrease from last year.
The Auckland average asking price fell below $1 million for the first time in six years, down 2.9% from August and 22% lower than its January 2022 peak of $1.27 million. The Southland urology service is facing potential collapse due to cancelled surgeries, raising concerns about patient care.