New Zealand’s business confidence surged in Q3 2026, with a net 43% of survey firms expecting general business conditions to improve, up from 8% in Q2. The latest New Zealand Institute of Economic Research’s (NZIER) Quarterly Survey of Business Opinion showed that the improvement came amid the ongoing Middle East conflict. A net 40% of firms expect general economic conditions to improve in the coming months, up from 14% in Q2, marking the highest in more than a year. Businesses were more optimistic about demand in the next quarter, with 15% expecting better trading, up from 11% in the previous survey. Meanwhile, expectations of inflation risks over the coming year also improved, with the share of firms expecting higher costs falling to 47% from 54%, while those expecting to increase prices eased to 43% from 54%. However, the survey suggested flat economic growth over the quarter, while firms expected the RBNZ to hike interest rates this year.