Business confidence figures defied expectations by continuing to rise in January.What is more the biggest rise is in the formerly troubled areas – manufacturing, construction and services.The National Bank's latest business confidence survey shows a
Business confidence figures defied expectations by continuing to rise in January.
What is more the biggest rise is in the formerly troubled areas – manufacturing, construction and services.
The National Bank’s latest business confidence survey shows a net 50% of respondents expect better times ahead, up 11% on December.
This is the highest since April 1999, just as New Zealand was emerging from the Asian Crisis.
The usually more sober survey of firms' “own intentions” – as opposed to their general expectations for business conditions – are also highly optimistic.
A net 42% of respondents expect an improvement over the coming year, up from 37% in December.
The survey was widely anticipated to show some pullback from the optimism of late last year. Numerous commentators have suggested the mood in the early summer was prematurely upbeat.
However, today’s figures show the business mood is more robust, ANZ Bank chief economist Cameron Bagrie said.
“When we roll such readings from the survey into our composite growth indicator, the economy could well be on track for 4% growth.
“So 2010 has started with good cheer.”
