Business confidence takes another step higher
New Zealand business confidence continues to nudge higher, led by a sharp jump in the retail and services sectors.
BUSINESSDESK: New Zealand business confidence continues to nudge higher, led by a sharp jump in the retail and services sectors, according to the latest National Bank Business Outlook survey.
A net 36% of respondents expect better times for the economy in the year ahead, up two points on March, while a net 36% of companies predict their own activity will improve, down three points on the month prior.
That number remains over the historic average of net 26%.
Retail showed the largest lift in business confidence hitting a 23-month high, while the biggest loser was agriculture, where business sentiment and the outlook for activity, employment and profit all receding.
“You don’t need to look any further than the disconnect between falling commodity prices and the elevated New Zealand dollar to identify the catalyst,” the bank’s chief economist, Cameron Bagrie, said.
“The work horses of the economy, such as agriculture, are not kicking on and are facing a persistently high currency despite falling commodity prices.
“This is not the stuff which export recoveries are made of,” Mr Bagrie said.
Export intentions did lift two points to 23% but remain well below the historic average of 32%.
Pricing intentions continued to fade, down three points to a net 19%.
Inflation expectations remained unchanged at 2.8%after the Reserve Bank left the official cash rate unchanged on 2.5% at its April meeting.
Hannah Lynch
Mon, 30 Apr 2012
Mon, 30 Apr 2012
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Business confidence takes another step higher
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