New Zealand: Businesses confidence weakens for second consecutive month
April 30, 2013
According to the business confidence indicator published by ANZ, a net 32.3% of respondents to the April survey expect economic conditions to improve in the next 12 months. Business sentiment has now moderated for two consecutive months and is down 2.3 points from the March result, when a net 34.6% of respondents expected better economic expectations. That said, despite the monthly fall, the index remains well above the 0-point threshold which indicates that optimistic respondents outnumber pessimists.
According to ANZ, businesses in the construction and services sectors continue to show improving optimism. In contrast, the agricultural sector continues to show a gloomier view, as the worst drought in about 70 years in the northern region of the country is expected to take its toll on farmers and ranchers. Moreover, businesses' own activity expectations - a better predictor for economic activity - also 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