The Western United States is an important part of the US economy and a key regional market of interest to New Zealand business. The latest Market Intelligence Report from New Zealand Ministry of Foreign Affairs & Trade (MFAT) provides a timely snapshot of how conditions are evolving across the region.
The report describes an economy marked by both resilience and uncertainty. Key economic fundamentals, including employment levels and household wealth, remain relatively strong. At the same time, consumer and business confidence is softer, reflecting persistent cost pressures and uncertainty around the broader policy environment. This divergence between economic indicators and business/consumer sentiment is influencing spending patterns and investment decisions across the region.
Trade dynamics are also evolving. After an earlier period of inventory front-loading to mitigate tariff impacts, businesses are now treating tariffs as a longer-term constraint to be managed. This adjustment phase is prompting exporters, including those from New Zealand, to reassess pricing structures, supply chain arrangements and market strategies as part of more durable planning.
The report highlights uneven outcomes across sectors, with some firms continuing to perform strongly while others face more challenging conditions. For New Zealand businesses, this reinforces the importance of targeted market knowledge and adaptability when engaging with the valuable Western US.
The full report is available here on their website.