WELLINGTON, July 14 (Xinhua) -- New Zealand business confidence improved in the June quarter as concerns over a global fuel shock eased amid ongoing geopolitical uncertainty, a survey showed on Tuesday.
The New Zealand Institute of Economic Research's Quarterly Survey of Business Opinion found a net 12 percent of firms expect economic conditions to improve, up from 1 percent in the previous quarter following a fuel-price spike linked to the Middle East conflict.
The survey period coincided with falling fuel prices after a temporary agreement to secure shipping through the Strait of Hormuz, though renewed tensions have since pushed prices higher again, according to the quarterly survey of around 10,000 New Zealand firms.
Demand in firms' own businesses was broadly flat, with a net 1 percent reporting increased activity in the June quarter, the survey showed.
Ongoing uncertainty is keeping firms cautious about hiring and investment. A net 10 percent of firms reduced staff in the June quarter, and a net 3 percent plan to cut capital spending over the coming year, it said.
Sector performance was mixed. Construction remained subdued due to weak demand, falling prices and declining profitability. Retailers and services firms were more optimistic despite rising costs, while manufacturers adopted a neutral outlook.
Cost pressures intensified, with more than half of firms reporting higher expenses, pointing to persistent inflation risks in the New Zealand economy, according to the survey. ■
