New Zealand: Businesses more optimistic in February
February 28, 2011
According to the February business confidence indicator published by the National Bank of New Zealand (NBNZ), a net 34.5% of respondents to the survey expect better business conditions over the next twelve moths. The positive result was up 5 points over the December reading (the survey is not conducted in January), moving further away from the 0-point threshold that separates the optimism from pessimism. The NBNZ February survey was taken before the devastating earthquake in Christchurch, which will probably impact business confidence in March. The February result reflected an improvement of businesses' own activity expectations for the next 12 months. Consequently, firms' profit expectations also improved compared to the previous survey. In addition, business investment expectations continued to improve, as a net 9.0% of firms expect to invest in buildings, plants and machinery in the following year, which was up from 8.3% of businesses registered in December.
Author: Ricardo Aceves, Senior Economist