NZ Economy Shows Signs of Recovery Amid Easing Fuel Prices
New Zealand's economy is showing signs of recovery as global fuel prices ease, but the improvement remains fragile.
The NZ Institute of Economic Research (NZIER) says that business confidence has ticked up modestly in its latest Quarterly Survey of Business Opinion, with early signs of a pickup in manufacturing and services activity.
However, consumers remain cautious despite improving conditions, with spending and hiring yet to follow. Retail volumes fell in the June quarter as elevated petrol and electricity costs squeezed discretionary budgets, while unemployment climbed to 5.6%.
NZIER attributed the easing fuel pressure to a partial reopening of the Strait of Hormuz, expanded use of alternative Middle East export routes, and greater supply from other producers, all of which have taken pressure off crude oil prices and helped calm financial markets.