New Zealand: Business confidence drops to six-month low
April 29, 2015
Confidence among businesses declined in April, according to the ANZ Bank Business Outlook, which reported that a net 30.2% of businesses surveyed expected better economic conditions in the coming 12 months. The result, which came in below March’s 35.8%, represented the weakest reading since October 2014. However, business confidence remains comfortably above the 0% threshold that separates optimism from pessimism.
According to ANZ, business confidence decreased in 8 of the 14 categories that compose the index. Firms’ expectations for their own activity, which is an even better predictor of economic activity, inched down from 42.2 points in March to 41.3 points in April. According to ANZ, April’s print indicates that, “[b]usiness confidence and firms’ signals on the employment, investment and activity fronts continue to oscillate, as opposed to trend.”
Author: Eric Denis , Economist