NZIER’s QSBO shows sharp fall in activity with businesses still downbeat - Quarterly Survey of Business Opinion, July 2020

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.

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