Source: New Zealand Institute of Economic Research
07 July 2020
The latest NZIER Quarterly Survey of Business Opinion (QSBO) surveyed firms over the main period of the COVID-19 lockdown.
The results show New Zealand economic activity dropped sharply in the June quarter. The net 37 percent of businesses reporting a decline in own trading activity brings this measure to the lowest level since March 2009. This is not surprising, given the tight trading restrictions under Alert Level 4.
However, a net 25 percent of businesses also expect weaker demand in the next quarter. And although there was a slight improvement in headline business confidence, businesses remain pessimistic about general economic conditions over the coming months. Business confidence tends to soften heading into a general election, with businesses holding off on major spending decisions given uncertainty over the outcome. This quarter, the pre-election uncertainty is compounded by uncertainty over how the COVID-19 outbreak will play out.
Read the media release here.