New Zealand’s ANZ Business Outlook Index fell to 53.7 in August 2026 from July’s revised five-month high of 56.1, indicating a modest cooling in business sentiment. The reading remained above the neutral 50 level, meaning optimistic firms still outnumbered pessimistic ones, although expected own activity eased to 48.2 from 49.3. Assessments of past activity improved to 16.4 from 9.7. Forward indicators were mixed: export intentions rose to 31.4 from 26.6 and employment intentions increased to 19.3 from 18.1, while profit expectations declined to 23.1 from 28.7 and investment intentions edged down to 22.1 from 22.8. Cost pressures intensified, with pricing intentions rising to 51.0, cost expectations to 80.8 and wage growth expectations to 2.62%. Inflation expectations increased to 3.26% from 3.14%, while credit availability improved to 2.4 from 1.4. Sentiment weakened in commercial and residential construction. The August decline comes as businesses face global uncertainty, higher borrowing costs, supply-chain disruptions, falling commodity prices and adverse weather, despite a tight labor market and resilient household spending. Economists said the move was within the survey’s margin of error, but sustained weakness could affect investment, hiring and economic growth. The Reserve Bank of New Zealand is monitoring business confidence ahead of its next official cash rate decision in October.