New Zealand Business Confidence

New Zealand

New Zealand: Business confidence falls to over-four-year low in June

June 29, 2015

Confidence among businesses fell in June, according to the ANZ Bank Business Outlook, which reported that a net 2.3% of businesses surveyed expected worse economic conditions in the coming 12 months. The figure, which came in below May’s 15.7% of respondents expecting better economic conditions, represented the worst result since March 2011. As a result, business confidence moved under 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, decreased from 32.6 points in May to 23.6 points in June. 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, June’s survey results indicate that, “the economy is showing signs of heading off-piste.”

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 June 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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