NZ Business Confidence Dips as Oil Price Spike Hits

New Zealand business confidence dipped in September due to a mid-month surge in oil prices, according to ANZ's latest survey. The index slipped to 51.9 from 53.7 in August, while firms' expectations for their own activity were little changed at 47.9.

The bumpy recovery continues, as ANZ economists described it. Firms that answered after the oil price spike reported weaker results than those who responded earlier.

However, inflation indicators held firm, with one-year inflation expectations steady at 3.25% and a net 48.4% of firms planning price rises, down from 51.0%. The Reserve Bank's next review is due in October, and economists say these results should reassure the central bank.

Residential construction intentions improved to 22.2 from 15.5, but firms' expectations for ease of credit turned slightly negative at -0.3.