New Zealand: Business confidence falls to over-six-year low in August
September 3, 2015
Confidence among businesses fell in August, according to the ANZ Bank Business Outlook, which reported that a net 29.1% of businesses surveyed expected worse economic conditions in the coming 12 months. The figure, which came in below July’s 15.3% of respondents expecting worse economic conditions, represented the worst result since March 2009. As a result, business confidence moved further below the 0% threshold that separates optimism from pessimism.
According to ANZ, business confidence decreased in all of the 14 categories that compose the index, with the exception of the residential construction. Firms’ expectations for their own activity, which is an even better predictor of economic activity, decreased from 19.0 points in July to 12.2 points in August. 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, August’s survey results indicate that it, “portrays a very sluggish economy.”
Author: Eric Denis , Economist