New Zealand Business Confidence Rises in Q2; NZD 500M Kiwibank Injection, June Trade Surplus NZD 142M, ANZ July Confidence 47.8

New Zealand's business confidence showed improvement in the second quarter of 2025, according to surveys by the New Zealand Institute of Economic Research (NZIER) and ANZ Bank. NZIER reported that a net 18% of firms expect improved trading in the third quarter, while 23% experienced worse trading in the second quarter. Additionally, 22% of businesses anticipate an economic strengthening. Despite this optimism, actual trading conditions remained subdued. In July, ANZ's business confidence index rose to 47.8 from 46.3, although the activity outlook slightly declined to 40.6 from 40.9. On the trade front, New Zealand's June exports fell to NZD 6.63 billion from a revised NZD 7.50 billion previously, while imports increased to NZD 6.49 billion from a revised NZD 6.42 billion. The monthly trade balance narrowed to a surplus of NZD 142 million, down from NZD 1.235 billion in May. However, the 12-month year-to-date trade deficit widened to NZD 4.37 billion from NZD 3.79 billion. The New Zealand Cabinet also approved a NZD 500 million capital injection into Kiwibank to support growth. Meanwhile, UK business sentiment data showed a decline in total orders and retail sales in July, with CBI total orders falling by 30 points and retail sales dropping by 34 points, although both were slightly better than previous months.