New Zealand: Business confidence drops to 15-month low in June
June 28, 2012
According to the June business confidence indicator published by the National Bank of New Zealand (NBNZ), a net 12.6% of respondents to the survey expect better economic conditions in the next 12 months. The result was down from the 27.1% of respondents to the May survey and represents, in fact, the lowest sentiment level recorded since March 2011. As a result of the monthly decline, the index moved closer to the 0-point threshold, which indicates that optimistic respondents outnumber pessimists. According to the Bank, business confidence fell across all five sub-sectors, particularly in the agricultural sector, where a 30% of respondents expect worse economic conditions in the year ahead. Moreover, firms own activity expectations continued to deteriorate, underscoring that the global scene continues to weigh on businesses' conditions and showing that firms are likely to be more cautious about their investment expectations in the next 12 months.
Author: Ricardo Aceves, Senior Economist