New Zealand Firms’ Gloomy Outlook Raises Risk of Recession
Pedestrians cross a bridge as the Sky Tower and other buildings stand in the background in Auckland, New Zealand.
Photographer: Fiona Goodall/BloombergNew Zealand businesses were less optimistic in the third quarter, raising the risk of another recession and deeper interest-rate cuts from the central bank.
A net 18% of businesses expect the economy to improve in the next six months, down from 22% in the second quarter, the New Zealand Institute of Economic Research said Tuesday in its quarterly survey of business opinion. A net 14% said their own trading deteriorated in the third quarter while a net 23% fired workers.