New Zealand: Business confidence moves further up into optimistic territory in November
November 28, 2014
Confidence among businesses rose in November, according to the ANZ Bank Business Outlook, which reported that a net 31.5% of businesses surveyed expected better economic conditions in the coming 12 months. The result, which came in above October’s 26.5%, represented a second consecutive increase after seven declines. Businesses have not been this confident in four months. As a result, business confidence moved further above the 0% threshold that separates optimism from pessimism.
According to ANZ, business confidence rose in 8 of the 14 categories that compose the index. Firms’ expectations for their own activity, which is an even better predictor of economic activity, increased only marginally from 37.8 points in October to 41.7 points in November. Regarding the different subsectors, confidence rose in the agriculture, manufacturing and service segments, while it decreased in the retailing and construction sectors. According to ANZ, November’s survey results indicate, “good growth, employment and investment,” and that, “[t]he economy is in an enviable sweet spot; demand indicators remain strong and inflation nuances benign.”