New Zealand: Business confidence soars to over-one-year high in September
September 30, 2016
Economic sentiment among New Zealand businesses rebounded in September after declining for two consecutive months. The ANZ Bank Business Outlook indicator showed that a net 27.9% of surveyed firms expected better economic conditions in the next 12 months, which was above than the 15.5% increase recorded in August and marks the highest print in 17 months. This pushed the business confidence indicator further above the 0% threshold that separates optimists from pessimists.
According to ANZ, nearly half of all businesses surveyed expect economic conditions to improve, the highest result in over two years. Firms reported strong intentions to increase staffing and although the reading for investment intentions eased, it remained above its long-term average. Exports intentions lifted strongly in spite of a strong NZD and businesses expect profits to increase notably. Confidence in all five sub-sectors that compose the index rose in September with services recording the highest print.