New Zealand Business Confidence

New Zealand

New Zealand: Business confidence inches up to eight-month high in March

March 31, 2015

Confidence among businesses rose in March, according to the ANZ Bank Business Outlook, which reported that a net 35.8% of businesses surveyed expected better economic conditions in the coming 12 months. The result, which came in a notch above February’s 34.4%, represented the best result since July 2014. As a result, business confidence moved further above the 0% threshold that separates optimism from pessimism.

According to ANZ, business confidence rose in 11 of the 14 categories that compose the index. Firms’ expectations for their own activity, which is an even better predictor of economic activity, increased from 40.9 points in February to 42.2 points in March. Moreover, ANZ stated that in March, sentiment was positive for all five sub-sectors. The agricultural sector recorded the largest improvement over the previous month, resulting from better climate and late-February’s increase in dairy prices. According to ANZ, March’s survey results indicate that, “the economic expansion continues at a robust pace. […] There is nothing in the seasonal pattern to suggest anything but underlying strength.”

FocusEconomics Consensus Forecasts panelists expect fixed investment to grow 7.6% in 2015, which is up 0.2 percentage points from last month’s estimate. For 2016, the panel sees fixed investment slowing to 4.6%.

Author: Teresa Kersting, Economist

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New Zealand Business Confidence Chart

New Zealand Business Confidence March 2015

Note: Percentage of respondents expecting improvement in general business conditions minus percentage expecting deterioration. An index number above 0 indicates that optimists outnumber pessimists. The survey is not conducted in January.
Source: ANZ Bank Business Outlook.

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