Fuel Price Spikes Dent New Zealand Business Confidence
Australia and New Zealand Banking Group reports a dip in business confidence following rising fuel costs and geopolitical tensions in the Strait of Hormuz.
Rising fuel prices and geopolitical tensions in the Strait of Hormuz reduced New Zealand business confidence in September 2026. According to the latest Business Outlook survey from Australia and New Zealand Banking Group Limited, headline confidence eased two points to approximately 52.
Global oil prices surpassed US$100 a barrel on September 10, peaking at US$128 before settling at US$111 by September 22. This surge, coupled with a sharp decline in the New Zealand dollar, drove a nearly 22% increase in retail fuel prices over the month. Survey data revealed a distinct split in sentiment, with businesses responding after the oil price spike reporting significantly lower activity indicators.
While the retail, services, and agriculture sectors cooled, the manufacturing and construction sectors continued to show growth. Despite these headwinds, overall activity levels remained higher than the lows seen in March and April 2026, and inflation expectations held steady at 3.25%.
