New Zealand: Business confidence rebounds in October
October 29, 2015
Confidence among businesses rebounded in October, according to the ANZ Bank Business Outlook reporting that a net 10.5% of businesses surveyed expected better economic conditions in the coming 12 months. The figure contrasted September’s 18.9% of respondents expecting worse economic conditions. As a result, business confidence jumped above the 0% threshold that separates optimism from pessimism and reached a five-month high.
According to ANZ, business confidence increased in all of the 14 categories that comprise the index. Firms’ expectations for their own activity, which is an even better predictor of economic activity, increased from 16.7 points in September to 23.7 points in October. While the agricultural sector remained among the most pessimistic, a rebound in dairy prices had a significant impact on overall business climate. ANZ highlighted that, “dairy prices are about 50% above their early August lows. Prospects for the 2015/16 dairy payout still look poor, but not as bad as they did a couple of months ago.”
Author: Eric Denis , Economist