Sharechat Logo

Businesses still bullish, more expect to start hiring, investing

Wednesday 28th April 2010

Text too small?

New Zealand businesses kept their upbeat outlook on the economy this month as more firms flag they will begin hiring and reinvesting in their businesses over the coming year.

A net 50% of companies surveyed expect business conditions to improve over the next 12 months, up from a net 43% last month, according to the National Bank Business Outlook.

That came amid a net 43% of companies predicting their own activity will improve in the coming year, up from a net 39% in March, and the highest level since March 1999.  

"The positive expectations towards their own businesses look to be spilling into other survey indicators," chief economist Cameron Bagrie said in his report.

"If expectations reading is maintained and matched by reality, then increased hiring and investment will naturally follow." 

New Zealand's economy climbed out of its worst recession in 18 years in the middle of last year, though consumer spending has been slightly subdued amid an 11-year high unemployment rate at 7.3% in the three months ended December 31.  

Hiring intentions rose to a net 13% from 8.7% in March, and a net 4% of respondents are picking the unemployment rate to drop, the first time businesses have been optimistic on the labour market since March 2001. Investment intentions rose to a net 10% from 9.3% last month. 

Companies are more bullish on their profit expectations, with a net 26% expecting to make more money in the coming year, compared to a net 19% in March.  

A net 26% of businesses are still expecting to increase their prices over the next 12 months, though their expectation for inflation crept up to 2.67% from 2.64% a month ago.

The Reserve Bank will review the official cash rate tomorrow and is expected to keep it on hold at a record low 2.5% after first quarter inflation data was softer than market expectations at 0.4%. 

Businesswire.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

VCT - Operational performance for the year ended 30 June 2024
Challenge to banks the way to go
Bigger returns or lower risk?
NPH - Director Appointment
July 19th Morning Report
Wellington International Airport Ltd (“WIA040”) - Maturity
Devon Funds Morning Note - 18 July 2024
CNU - Commerce Commission releases draft Price Quality decision
Precinct FY24 Annual Results and Webcast Details
Scott Technology appoints new CEO