Australia loses, New Zealand gains
In one way, New Zealand is well ahead of Australia.
New Zealand is well ahead of Australia – in business confidence.
New Zealand was one of only 15 countries where business optimism grew in the second quarter of 2011, according to the most recent Grant Thornton International Business Report. Internationally, recovering levels of business optimism hit a wall.
The report indicates across many countries there has been a significant quarter-on-quarter decline in levels of business optimism, led by Australia.
Grant Thornton New Zealand partner Peter Sherwin said Australia’s 44% decline in confidence from 2010 to 2011 was the highest for any country surveyed.
He said it was fresh evidence that the declining housing market, exceptional strong dollar that was impacting on tourism and the recently introduced “flood tax” were all starting to weigh heavily on Australians’ minds.
“Maybe we are starting to close the gap after all?”
The report said that in global terms the past three months have been challenging and business optimism has been hit hard.
Mr Sherwin said companies were feeling the effects of the unrest in the Middle East and the subsequent volatility in oil and commodity prices. He said this had recently led western nations to release large stocks of oil.
“In addition, the earthquake and nuclear disaster in Japan caused huge disruption to supply chains.”
NBR staff
Thu, 07 Jul 2011
Thu, 07 Jul 2011
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Australia loses, New Zealand gains
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