New Zealand Business Confidence Eases, Despite Improved Activity

New Zealand's business confidence slipped in August, but recent activity has shown improvement. According to ANZ's survey, firms' forward-looking signals eased slightly, with expected own activity dropping to 48 from 49.

However, past activity rose to its most encouraging level this month, increasing to 16 from 10 in July, which ANZ attributed to stronger services momentum. This mixed trend suggests the economy may be finding its footing, even if businesses still feel cautious about the next few months.

The inflation expectations of New Zealand firms also rose, with a 3.26% increase from 3.14%. More companies expect higher costs and plan to raise their own prices, which could keep near-term inflation 'sticky' and make it harder for interest-rate expectations to fall quickly.