New Zealand skyline

New Zealand Business Confidence October 2019

New Zealand: Business confidence improves but remains deeply entrenched in pessimistic territory in October

The ANZ bank business outlook indicator jumped 11.1 points in October, but nevertheless a net 42.4% of firms still report that they expect general business conditions to deteriorate in the year ahead. The headline reading thus remained deeply entrenched below the net-0% threshold that separates pessimism from optimism among businesses.

October’s result reflected improving profit expectations and investment intentions, as well as better expectations on the availability of credit. That said, all metrics remained in pessimistic terrain. Moreover, October’s reading reflected a deterioration in employment and export intentions, as well of capacity utilization, which is now at a decade-low.

Meanwhile, firms’ outlooks regarding their own activity—a metric which has a stronger correlation to GDP growth—declined to an over decade-low of net minus 3.5% in October, after reporting a net minus 1.8% in September. Notably, the activity outlook remains in negative territory for the retail, agricultural and construction sectors, while the manufacturing sector moved to positive terrain and the services sector showed a neutral outlook.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest