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.”
Author: Eric Denis , Economist