Business Confidence Rises in South Korea and New Zealand

Business sentiment rebounded in July 2026 across both South Korea and New Zealand, according to data released on July 30. In South Korea, the Bank of Korea reported that the composite business sentiment index rose 0.8 points to 98.5. This recovery was fueled by the manufacturing sector, which saw a 2.0-point gain to 103.2 due to strong semiconductor and shipbuilding exports, as well as improvements in precision instruments and fabricated metal products.

South Korean non-manufacturers saw a slight decline in sentiment to 95.2, citing rising ocean freight costs, labor costs, and Middle East conflict as primary challenges. The broader economic sentiment index, including consumers, rose 1.1 points to 97.9.

In New Zealand, business confidence jumped to 56 from 36.6 in June, based on an ANZ Business Outlook Survey. These gains were most significant in the manufacturing and construction sectors. While inflation expectations eased slightly to 3.14%, the Reserve Bank of New Zealand raised the Official Cash Rate in early July to maintain core inflation targets. Economists noted that the ongoing conflict in the Middle East remains a headwind for the recovering New Zealand economy.