Sharechat Logo

Business confidence turns positive for first time since 2002

Tuesday 30th September 2008

Text too small?
New Zealand business confidence rebounded this month as interest rates fell and firms grew more bullish about their own outlook.

A net 1.6% of respondents expect better times ahead, the first time optimists have outnumbered pessimists since May 2002, according to National Bank's Business Outlook survey for September.

Most of the responses were collected before the most recent turmoil in markets, which has seen the failure of Lehman Brothers, the acquisition of Merrill Lynch and government rescues of financial institutions in Europe and the US. New Zealand's economy is forecast to climb out of a three quarter long contraction starting tomorrow, helped by lower interest rates and a weaker currency.

"We are at the mercy of the US economy, the US Treasury, the Federal Reserve, other central banks, Europe, Asia and global credit markets as this game of roulette is played out," said Cameron Bagrie, National Bank's chief economist.

While the confidence number turned marginally positive, the picture is less encouraging when other indicators assessed, according to the report. Employment intentions and profit expectations are still negative.

The gloomiest sector is agriculture, where a net 35% expect worse times ahead.

By Jonathan Underhill

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

18th October 2021 Morning Report
T&G Global Limited (NZX: TGG) FY21 Earnings Guidance Update
Arvida Group Limited (NZX: ARV) Successful Completion of $155m Placement
FreshLeaf: Cannabis on course to be 'medicine of the masses'
Arvida Group Limited (NZX: ARV) to Acquire Arena Living Retirement Living Portfolio
My Food Bag Group Limited (NZX: MFB) Market Update and HY Results Announcement Date
Harmoney Corp Limited (NZX: HMY) Delivers Record September Quarter
Vital Healthcare Property Trust (NZX: VHP) Announces Successful Completion of $115m Placement
14th October 2021 Morning Report
General Capital Limited (NZX: GEN) Completes Greenfern Listing