Construction, freight, retail, and hospitality/tourism sectors show strong gains in Forsyth Barr’s Pulse of New Zealand Business survey.
Demand has surged notably over the past three months, with profitability outlooks for the next 12 months rising sharply compared to the investment firm’s prior survey.
Roughly 50% of respondents now budget for higher profits over the coming year, up from 30% in the last two surveys, while about 30% report stronger demand in the past three months.
This aligns with businesses shifting from stabilisation into recovery mode.
In contrast, views on whether the economy is heading in the right direction have improved only modestly.
Regional areas are spearheading the broadening recovery, continuing to outpace Auckland, Wellington, and Christchurch by an expanding margin.
Medium-sized enterprises are leading the surge, remaining the most optimistic group on recent trading and future outlooks.
Deteriorating demand is no longer the top concern, aligning with improving economic activity and rising confidence across multiple sectors.
Increasing competition and the need to adapt to new technology are emerging as key concerns.