New Zealand: Business confidence weakens in July
July 29, 2016
Economic sentiment among New Zealand businesses fell in July after three consecutive months of improvement. The ANZ Bank Business Outlook indicator showed that, in July, a net 16.0% of surveyed firms expected better economic conditions in the next 12 months. The number of businesses with this positive view in July was lower than the 20.2% recorded in June. Despite the decline, the business confidence indicator remains above the 0%-threshold that separates optimists from pessimists.
ANZ said that July’s print mainly reflected a moderation in economic sentiment in the construction and services sector. Meanwhile, confidence among firms in the agricultural sector remain depressed. Nonetheless, ANZ noted that the mild drop in July reflected purely seasonal factors and that, “business sentiment itself however, often masks what is happening across the general economy.” ANZ went on to say that businesses’ own activity expectations continue to suggest robust growth.
Author: Ricardo Aceves, Senior Economist