Sharechat Logo

NZ business confidence slips in December

Thursday 20th December 2012

Text too small?

New Zealand business confidence fell this month, while holding at reasonably upbeat levels, continuing a monthly see-saw in the sentiment in an economy that's only recording tepid growth.

A net 23 percent of respondents in the ANZ Bank Business Outlook expect general business conditions to improve in the year ahead, down from 26 percent in the previous month's survey. Those expecting a better 12 months out of their own businesses slipped to 31 percent from 32 percent.

The survey results come after government figures showed the economy grew 0.2 percent in the third quarter - half the expected pace, with increased construction activity helping maintain the expansion. The Business Outlook shows residential and commercial construction investment intentions were again the strongest in the survey at 32 percent and 33 percent respectively, little changed from the previous month.

Construction was also the sector with the strongest hiring intentions, at 21 percent, helping lift overall employment intentions to 7.9 percent from 6.3 percent.

"Sentiment remains elevated relative to historic norms, though the tendency towards drifting as opposed to trending appears reflective of the stop-start nature of the general economy," ANZ Bank chief economist Cameron Bagrie said.

Business confidence was weakest in agriculture, where a net 18 percent expect general business conditions to worsen over the next 12 months, compared to 37.9 percent for construction and 32 percent for retailing.

Export intentions improved to 19 from 18, still well below the average of 32 in the face of a persistently strong New Zealand dollar. One-year inflation expectations were little changed at 2.2 percent, though pricing intentions fell to 15 from 16.9.

Ease of credit improved to 15 from 11.

BusinessDesk.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:

Heartland announces FY20 full year results
Geo Limited releases its FY20 Annual Report
Michael Hill International Limited announces 2020 annual report
Tower supports climate risk reporting
Tourism Holdings Limited Updated FY20 guidance
The Bankers Investment Trust Plc- Issue of Equity
Oio Consents to Acquisition of Metlifecare
Summerset Considers Retail Bond Offer
Z seeks previous corporate employees for remediation payment
SkyCity Announces Full Year Results

IRG See IRG research reports