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SME pessimism grows as OCR cuts fail to lift confidence

Small business news

Small and mid-sized business owners in New Zealand remain pessimistic despite recent OCR cuts, with many yet to see benefits flow through to their operations.

A new MYOB survey of 505 firms found one third have cut expenses and nearly a quarter have paused hiring, while 40% expect the economy to decline over the next year—up sharply from earlier optimism.

Rising costs and weak consumer spending are key concerns, with over half of SMEs worried about inflation.

Although some hope remains—36% believe conditions will improve—the majority see little relief on the horizon, with many calling for stronger measures to support recovery.

Image credit: Tom Mossholder

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