New Zealand: Businesses turn less optimistic in December
December 18, 2012
According to the December business confidence index published by ANZ, a net 22.7% of respondents to the survey expect better economic prospects in the next 12 months. The figure was below the 26.4% of respondents observed in the November survey. Despite the drop, the index remains well above the 0-point threshold, which indicates that optimists outnumber pessimists.
According to ANZ, business confidence improved in the retailing and manufacturing sectors, but deteriorated in agriculture, construction and services. Meanwhile, firms' own activity expectations - a better predictor for economic activity - remained virtually unchanged compared to the previous month. On the downside, firms' investment expectations in the year ahead dropped over the previous month.
Author: Ricardo Aceves, Senior Economist