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Fuel Surge Weighs on Business Sentiment Across Asia-Pacific

Business confidence in New Zealand ticked higher in May but remains near three-year lows as elevated fuel costs continue to squeeze margins and dampen customer demand across the region.

Energy prices are reshaping operations far beyond New Zealand's borders. Taiwanese container shipping operator Evergreen Marine told shareholders it expects Q2 fuel expenses to exceed Q1 levels amid volatile oil prices and Strait of Hormuz disruptions. Cost pressures are rippling through supply chains globally, with export pricing in China climbing at its fastest pace in three years as oil shocks filter through manufacturing sectors.

Industries dependent on fuel face particular strain. Shrimping operators in the U.S. Gulf are cutting operations as rising fuel costs and competition from cheaper imports erode profitability. The elevated cost environment shows little sign of relief, threatening broader economic growth.