New Zealand: Business confidence dips in August
Latest reading: The ANZ Business Confidence Index eased to 53.7 in August from 56.1 in July, but remained at a historically high level and comfortably above the zero threshold separating optimism from pessimism. Firms’ expectations for their own activity also softened slightly, to 48.2 from 49.3, while remaining strong.
The monthly picture was mixed across the major indicators. Export intentions rose to 31.4 from 26.6, while employment intentions increased to 19.3 from 18.1 and credit conditions improved to 2.4 from 1.4. In contrast, investment intentions slipped to 22.1 from 22.8, profit expectations fell to 23.1 from 28.7, and both residential and commercial construction intentions weakened. Most notably, reported past activity—which is closely linked to GDP—rose strongly to 16.4 from 9.7, led by the services sector, providing a clearer indication that the economic recovery is gaining traction.