New Zealand: Businesses confidence wanes in March
March 27, 2013
According to the business confidence indicator published by ANZ, a net 34.6% of respondents to the March survey expected better economic expectations in the next 12 months. The result was down 4.8 points from the February reading, when a net 39.4% of respondents expected better economic times. Despite the monthly fall, the index remains well above the 0-point threshold which indicates that optimistic respondents outnumber pessimists.
According to ANZ, the services sector - which accounts for nearly two-thirds of the economy - continues to show improving optimism. On the other hand, businesses in the agricultural sector are turning gloomy, with confidence slipping into pessimistic territory. Moreover, firms' own activity expectations - a better predictor for economic activity - fell over the previous month.
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