NZ Business Confidence Falls, but Past Activity Sees Significant Boost

New Zealand's business confidence index fell by 2 points to 54 in August, according to ANZ's latest survey. This level is considered very high. The expected own activity index also decreased by 1 point to 48, which is another high figure.

However, the reported past activity index saw a significant increase of 6 points to 16, driven primarily by services. Inflation indicators showed mixed results. Firms' inflation expectations rose from 3.14% to 3.26%, and more businesses expect to raise their prices due to increasing costs.

The size of expected cost increases is decreasing, which might be a positive sign for the economy. The survey's results varied across sectors, but overall, business confidence and activity remained high in August.