New Zealand: Business confidence weakens further in November
The ANZ bank business outlook indicator dropped in November. As a consequence, a net 18.1% of firms reported that they expect general business conditions to worsen in the year ahead, deteriorating from a net 13.4% of firms expecting bleaker general business conditions in the year ahead in October. As a result, the headline reading moved further below the net-0% threshold that separates optimism from pessimism among businesses.
Business turned more pessimistic with regards to ease of credit expectations, export and investment intentions and capacity utilization. Moreover, their inflation expectations worsened.
Meanwhile, firms’ outlooks regarding their own activity—a metric which has a stronger correlation to GDP growth—fell to a net 15.6% in November from a net 21.7% in October.
Commenting on the release, Sharon Zollner, chief economist at ANZ, stated:
“Overall, the survey shows an understandable wariness as we move into a COVID-endemic world. The one certainty is that costs are through the roof.”