New Zealand: Business confidence climbs to highest level since 1999
September 30, 2013
Confidence among businesses improved notably in September according to the ANZ Bank Business Outlook, which reported that a net 54.1% of businesses surveyed expect economic conditions to improve in the coming 12 months. The result came in above August's 48.1% and represents the highest level since March 1999. Business confidence remains well above the 0-point threshold that separates optimism from pessimism.
The monthly reading reflects higher business sentiment in almost all sectors of the economy. In addition, the September survey showed that firms' expectations for their own activity, which is a better predictor of economic activity, had improved notably. According to ANZ, business confidence in September shows, "a collective picture of a full-blown economic expansion."
High levels of business confidence bode well for investment going forward. FocusEconomics Consensus Forecasts panelists expect fixed investment to grow 7.3% in 2013, which is down 0.1 percentage points from last month's estimate. For 2014, the panel sees fixed investment accelerating to 9.3%.
Author: Ricardo Aceves, Senior Economist