New Zealand: Business confidence recovers somewhat in July
July 30, 2012
According to the July business confidence indicator published by the National Bank of New Zealand (NBNZ), a net 15.1% of respondents to the survey expected better economic conditions in the next 12 months. The result was slightly up from the 12.6% of respondents to the June survey, when the index recorded the lowest sentiment level recorded since March 2011. The index remains above the 0-point threshold, which indicates that optimistic respondents outnumber pessimists. The July rise reflected improvements in the retail, manufacturing and agricultural sectors. Meanwhile, according to the Bank, firms expectations regarding their own activity showed a marginal improvement compared to the previous month. Nonetheless, the Bank acknowledges that businesses own expectations are still below average. Moreover, firms' investment expectations edged up over the previous month, but fewer businesses expect higher profits in the year ahead.
Author: Ricardo Aceves, Senior Economist