New Zealand: Business confidence rises in November
November 28, 2011
According to the business confidence indicator published by the National Bank of New Zealand (NBNZ) in November, a net 18.3% of businesses expect better economic times for the next 12 months. The reading improved by 5.1 points over the previous month's survey, when a net 13.2% of respondents expected better economic conditions for the year ahead. As a result of the monthly improvement, the index moved further above the 0-point threshold, which indicates that optimistic respondents outnumber pessimists. According to the Bank, businesses' own activity expectations improved a notch over the previous month, which lifted up firms' profit expectations, with a net 4.3% of businesses expecting an increase in profits over the next 12 months (October: net 1.6% of respondents). Moreover, investment expectations recovered the ground lost in October, with a net 11.6% of respondents expecting better conditions for investing in buildings, plants and machinery over the next year. The reading was up from the net 8.7% of respondents expecting better conditions in October.