New Zealand: Business confidence partially recovers in September
September 29, 2015
Confidence among businesses partially recovered in September, according to the ANZ Bank Business Outlook that reported that a net 18.9% of businesses surveyed expected worse economic conditions in the coming 12 months. The figure was above August’s 29.1% of respondents expecting worse economic conditions. As a result, business confidence moved closer to the 0% threshold that separates optimism from pessimism.
According to ANZ, business confidence increased in all of the 14 categories that comprise the index, with the exception of the unemployment rate. Firms’ expectations for their own activity, which is an even better predictor of economic activity, increased from 12.2 points in August to 16.7 points in September. The agricultural sector remained among the most pessimistic, as a consequence of low dairy prices. ANZ highlighted that, “after five successive months of declines in the headline figure – and substantial declines at that – the turnaround is welcome.”
Author: Eric Denis , Economist