Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Business Confidence On The Road To Recovery

Data Flash (New Zealand)

The latest NBNZ business survey shows a recovery in confidence from -18% (net respondents) to -2%.

Similarly, firms' expectations regarding their own trading prospects have recovered, from +16% to +28%, with a rise from + 17% to +26% if usual seasonal variations are being taken into account.

The trading prospects series has historically been a good indicator of activity going forward (see chart). Its current level may suggest that GDP will not slow as much (to around 1.5% yoy) as assumed by the RBNZ and by us in the macroeconomic forecast updates released over the past month.

Improved sentiment is also reflected in investment and employment intentions, as well as profit expectations. The rebound in export expectations is particularly noteworthy considering continued global uncertainty. The improved assessment of the residential construction market from +10% to +31% is consistent with other information pointing to increasing buoyancy in the housing market. In line with improved sentiment and activity expectations, retailers' pricing intentions showed a renewed rise from +23% to +29%. That may suggest that there could be more resistance to inflation swiftly falling back to 1.5% than previously thought.

Overall, this survey confirms our central view that the RBNZ's easing cycle has come to an end.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>


Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news