New Zealand: Business confidence improves for second month in a row
August 30, 2012
According to the August business confidence indicator published by the National Bank of New Zealand (NBNZ), a net 19.5% of respondents to the survey expect better economic conditions in the next 12 months. The result was up from the 15.1% of respondents in the July survey and represents a second consecutive improvement in business sentiment, driving the index further above the 0-point threshold that indicates optimists outnumber pessimists. According to the Bank, business confidence rose across all five sub-sectors, particularly in retail and construction activity. Moreover, firms own activity expectations - a better indicator for economic activity - continue to edge higher, suggesting that firms are less concerned about the global scene. The figure also reflects that business expect higher profits in the next 12 months, but are likely to be more cautious about their investment expectations in the year ahead.
Author: Ricardo Aceves, Senior Economist