New Zealand’s business confidence improved to its highest level since March 2014 in Q4 2025, the New Zealand Institute of Economic Research’s (NZIER) Quarterly Survey of Business Opinion showed on Tuesday. A net 48% of firms surveyed expected general business conditions to improve, compared with 18% optimism in Q3. Christina Leung, principal economist at NZIER, a private think tank, said at a press conference that the survey indicated lower interest rates were finally starting to have an impact on the economy and that the recovery was beginning to gain traction. “The lift in sentiment was widespread across all sectors and regions,” Leung said, as Reuters reported. On a seasonally adjusted basis, 39% expected business conditions to improve, versus 17% optimism recorded in the previous period. The survey’s measure of capacity utilization rose to 89.8%, from 89.1% in the previous quarter.