Business sentiment has softened cross the board in NZIER's quarterly survey but not to an extent that suggests firms need to get a grip.
The decline in headline confidence to a three year low is consistent with an economy expanding 2.6 per cent in the year ended June just past -- unchanged , in fact from the year ended March.
It indicates the need for two more official cash rate cuts , NZIER economist Christina Leung said. Again nothing to startle the markets there.
Pricing power is under pressure, though. Only a net 1 per cent of firms reported they were able to raise their prices in the past three months, even though a net 17 per cent reported higher costs.
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