New Zealand: Business confidence inches down; stays in optimistic territory
December 19, 2014
Confidence among businesses inched down in December, according to the ANZ Bank Business Outlook, which reported that a net 30.4% of businesses surveyed expected better economic conditions in the coming 12 months. The result, which came in slightly below November’s 31.5%, represented the first drop after two increases. Nevertheless, business confidence still remains far above the 0% threshold that separates optimism from pessimism.
According to ANZ, business confidence moderated in 9 of the 14 categories that compose the index. While the largest drop was recorded for the agricultural sector, the biggest lift was recorded for construction. Firms’ expectations for their own activity, which is an even better predictor of economic activity, decreased from 41.7 points in November to 37.3 points in December. According to ANZ, December’s print, “continues to signal strong growth and low inflation; the Goldilocks run continues,” and reflects that, “the New Zealand economy has been in a sweet spot for some time now.”