The NZX 50 fell 54 points, or 0.4%, to 13,781 in Thursday morning trading after rising in the previous session. The decline followed an overnight drop on Wall Street, where a softer-than-expected inflation reading was offset by higher oil prices. Traders continued to monitor the Middle East conflict because rising energy costs could reinforce inflation expectations. Sentiment was also pressured by Wednesday data showing New Zealand business confidence at a three-month low. Investors were awaiting US jobs data later in the week for indications about the Federal Reserve's monetary policy decision at its upcoming meeting. New Zealand building permits rose at the fastest pace in four months in August, helping limit the market's decline. Nearly every sector traded lower, led by utilities, communication services, real estate and financials. Meridian Energy fell 1.7%, Hallenstein Glasson declined 1.5%, Ebos Group lost 1.3%, Fletcher Building dropped 0.9% and Mainfreight eased 0.6%.