New Zealand: Business confidence falls to lowest level in six months
March 31, 2016
Business confidence continued to wane in March, falling to the lowest level since September 2015, according to the ANZ Bank Business Outlook indicator, which showed that only a net 3.2% of surveyed firms expect better economic conditions in the next 12 months. March’s result came in below the net 7.1% registered in February. As a result, business confidence is now resting just above the 0%-threshold that separates optimists from pessimists.
ANZ indicated that a higher number of firms in the manufacturing and retailing sectors turned more pessimistic regarding the overall economic scenario. ANZ highlighted that sentiment turned notably negative among firms in the agricultural sector. That said, the survey showed that businesses were optimistic regarding prospects of their own activity and regarding their future profits. ANZ concluded that March’s survey showed that firms are becoming more “watchful.”
Author: Ricardo Aceves, Senior Economist