New Zealand: Business confidence decreases marginally in August due to seasonal factors
August 30, 2016
Economic sentiment among New Zealand businesses fell slightly in August, marking a second consecutive decline. The ANZ Bank Business Outlook indicator showed that in August a net 15.5% of surveyed firms expected better economic conditions in the next 12 months, which was marginally lower than the 16.0% recorded in July. Despite the decline, the business confidence indicator remains above the 0% threshold that separates optimists from pessimists.
ANZ said that August’s print mainly reflected a moderation in economic sentiment in the construction sector. In the agricultural sector, confidence among firms remained depressed, despite recording the largest jump in the month. Nonetheless, ANZ noted that the mild drop in overall confidence in August reflected purely seasonal factors and that, “the story is very robust when you dig a little deeper. After adjusting for seasonality, business confidence hit a 20-month high in August.”