New Zealand Firms Gloomy as Iran War Hits Costs, Profitability

New Zealand businesses expect to fire workers and reduce investment as the Middle East conflict drives up costs and hits profitability, according to a new business survey.

Overall business confidence fell to its lowest since mid-2024 with a net 4% of firms expecting the economy will deteriorate in the next six months, the New Zealand Institute of Economic Research said in its Quarterly Survey of Business Opinion released Tuesday in Wellington. That’s a sharp reversal from the 48% expecting improvement just three months earlier.