Business confidence rises in April, especially in Canterbury

Wednesday 27th April 2011

Business confidence rebounded in April from a plunge in March, according to the National Bank Business Outlook survey.

A net 14% of businesses expected better times for the economy in the coming year, compared to a net 8.7% in March expecting worse times.

A net 30 percent expected better times for their own business, double the number in March.

The plunge in confidence in March was seen as a reaction to the magnitude 6.3 earthquake in Christchurch on February 22.

Canterbury is now leading the rebound in confidence. Confidence in Canterbury rose 59 points, after falling 92 points last month. Firms' own activity expectations in the region lifted 35 points, bettered only by the Waikato.

Profit expectations in Canterbury rose 45 points and employment intentions lifted 36 points, fully reversing the March decline.

Residential investment intentions were strongest in Canterbury, with a net 80% expecting better times. A whopping 86 percent expected better times for commercial construction, dwarfing commercial perceptions in all other regions.

National Bank said that although the earthquake was an event of epic proportions the "shock and awe" impact had passed.

"There are still hurdles for the economy. But glimpses of recovery in early 2011 look to be getting back on track. And we suspect sooner rather than later."

NZPA

Comments from our readers

No comments yet