NZ Business Sentiment Slips from Five-Month High

New Zealand's business sentiment has taken a step back after reaching a five-month high in July. The ANZ Business Outlook Index, which measures the expectations of businesses across various sectors, dropped to 53.7 in August from its peak of 56.1.

While the index remains at historically strong levels, some key indicators are showing signs of slowing down. Export intentions improved slightly, and employment intentions rose, but profit expectations fell, and investment intentions edged downward.

Cost pressures, however, seem to be intensifying, with pricing intentions rising, cost expectations climbing, and wage growth expectations edging up. Inflation expectations also increased, suggesting persistent price pressures.