New Zealand skyline

New Zealand Business Confidence February 2018

New Zealand: Business confidence picks up in February but remains in negative territory

Economic sentiment among New Zealand businesses improved at the start of 2018 from December’s dire reading, although firms remained generally pessimistic. The ANZ Bank Business Outlook indicator showed that a net 19.0% of surveyed firms were pessimistic about the year ahead in February, up markedly from December’s minus 37.8% (the survey is not conducted in January). As a result, the indicator moved closer to the net-0% threshold that separates optimism from pessimism among firms.

During the month, firms outlook regarding their own activity—a metric which has a stronger correlation to GDP growth—also improved. In addition, businesses grew more positive regarding exports, investment, employment and profits. On the downside, a sizeable number of firms still foresee credit difficulties. Sentiment improved across all five sectors covered—agriculture, manufacturing, retail, construction and services—with retail the closest to optimistic territory. This is likely influenced by low inflation and a strong labor market, both factors which are encouraging consumers to splash more cash.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest