New Zealand: Business confidence falls in February
February 26, 2016
Confidence among businesses fell in February, according to the ANZ Bank Business Outlook, which reported that a net 7.1% of businesses surveyed expected better economic conditions in the coming 12 months, which was well below the 34.4% surveyed in the previous report. As a result, business confidence, which is now resting close to the 0% threshold that separates optimism from pessimism, reached a five-month low.
According to ANZ, business confidence decreased in 12 of the 14 categories that comprise the index. Firms’ expectations for their own activity, which is an even better predictor of economic activity, decreased from 34.4 points in November to 25.5 points in February. The agricultural sector remained the most pessimistic as a consequence of sustained low dairy prices.
Author: Eric Denis , Economist