New Zealand: Business confidence improves for third consecutive month
May 31, 2016
Confidence among New Zealand firms improved for a third consecutive month in May and continued to recover from the low registered in March. According to the ANZ Bank Business Outlook indicator, in May a net 11.2% of surveyed firms expect better economic conditions in the next 12 months. The number or businesses with a more positive view in May marked an improved over the 6.2% recorded in April. As a result, business confidence remained above the 0%-threshold that separates optimists from pessimists.
According to ANZ, gains were observed across the board, with construction remaining the most upbeat sector. The agricultural sector is still the sector with the weakest sentiment, as prices for dairy products are rising only timidly. Moreover, ANZ indicated that 30% of businesses remain upbeat about their own business prospects in the next 12 months.
Author: Ricardo Aceves, Senior Economist