New Zealand Business Confidence

New Zealand

New Zealand: Business confidence falls to eight-month low in May

May 31, 2015

Confidence among businesses fell in May, according to the ANZ Bank Business Outlook, which reported that a net 15.7% of businesses surveyed expected better economic conditions in the coming 12 months. The figure, which came in below April’s 30.2%, represented the worst result since September 2014. As a result, business confidence moved closer to the 0% threshold that separates optimism from pessimism.

According to ANZ, business confidence decreased in 12 of the 14 categories that compose the index. Firms’ expectations for their own activity, which is an even better predictor of economic activity, decreased from 41.3 points in April to 32.6 points in May and marked a two-year low. The agricultural sector recorded the largest fall over the previous month, resulting from a high New Zealand dollar and low dairy prices. According to ANZ, May’s survey results indicate that, “the economy is transitioning into a more modest pace of expansion.”

FocusEconomics Consensus Forecasts panelists expect fixed investment to grow 7.6% in 2015, which is up 0.2 percentage points from last month’s estimate. For 2016, the panel sees fixed investment slowing to 4.6%.

Author:, Economist

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New Zealand Business Confidence Chart

New Zealand Business Confidence May 2015

Note: Percentage of respondents expecting improvement in general business conditions minus percentage expecting deterioration. An index number above 0 indicates that optimists outnumber pessimists. The survey is not conducted in January.
Source: ANZ Bank Business Outlook.

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