New Zealand: Businesses turn more optimistic in May
May 31, 2013
According to the business confidence indicator published by ANZ, a net 41.8% of respondents to the May survey expect economic conditions to improve in the next 12 months. The reading represents an improvement after the indicator had moderated for two consecutive months. As a result, the index remains well above the 0-point threshold which indicates that optimistic respondents outnumber pessimists.
According to ANZ, businesses confidence improved in almost all the major sub-categories that compose the index, particularly in the construction sector, which continues to show improving optimism. Meanwhile, businesses in the agricultural sector are now showing a more positive view despite the effects of the worst drought in about 70 years. Moreover, firms' own activity expectations - a better predictor for economic activity - improved over the previous month. ANZ added that the May survey left an impression of "an economy that is neither too hot nor too cold".
FocusEconomics Consensus Forecasts panellists expect fixed investment to grow 8.0% in 2013, which is down 0.4 percentage points from last month's estimate. For 2014, the panel sees fixed investment decelerating to 6.8%.
Author: Ricardo Aceves, Senior Economist