New Zealand and Australia economic data show mixed growth and inflation trends

Economic indicators for New Zealand and Australia show mixed signals regarding growth and inflation. In New Zealand, the ANZ Business Outlook survey for August reported a slight dip in business confidence to 53.7% from 56.1% in July. Despite this, reported past activity rose by 6 points, driven largely by the services sector. Inflation expectations in New Zealand have increased to 3.26%, and firms are reporting higher pricing and cost intentions, which may support a hawkish stance from the Reserve Bank of New Zealand.

In Australia, the S&P Global Manufacturing PMI remained steady at 52 for the fifth consecutive month, indicating expansion. While new orders and business confidence improved, factory output saw a slight decline, and supply chain pressures from Middle East conflicts persist.

Currency markets for both nations remain near multi-month highs amid global bond selloffs. In Australia, there is growing market speculation regarding potential interest rate hikes by the Reserve Bank of Australia to combat core inflation, which remains at 3.6%.