New Zealand’s ANZ Business Outlook Index slumped to -10.6 in April 2026 from 32.5 in the previous month, marking the first negative reading since August 2023, as the Middle East conflict pressured sentiment. Firms’ own activity outlook weakened sharply (19.6 vs 39.3 in March), while past activity was little changed (16.9 vs 17.5). Forward indicators deteriorated: export intentions (1.1 vs 15.2), profit expectations (-13.3 vs 19.7), and investment intentions (3.3 vs 14.5). Employment intentions turned negative (-2.7 vs 9.4) and wage growth expectations eased (2.41% vs 2.74%). Pricing intentions softened (57.7 vs 60.3), but cost pressures accelerated (90.4 vs 84.7). Credit availability plunged (-21.5 vs -3.3), signaling a significant tightening in financial conditions, while inflation expectations rose to their highest since February 2024 (3.81% vs 3.08%). Sector sentiment also weakened, including residential construction (11.8 vs 35.3) and commercial construction (27.0 vs 42.1).