BNZ Monthly Survey Results July 5 2008
After improving for three months in a row business confidence about where the economy will be in 12 months time has gone backwards over the past month. In our survey from Thursday night through Friday a net 43.9% of respondents said they expect the economy to get worse. This is a deterioration from a net 29.8% pessimistic in late May but is still below the recent peak for pessimism in March of a net 62.3%.
The results will reflect the further increasing of petrol prices in recent times along with weaker sales activity reported by many respondents. Businesses are increasingly noting layoffs need to be made and few expect positive surprises in the near future.
Having said that, before we run through the generally negative comments for specific industries it can be noted that some industries are doing well – though there are but a few. They include dairying and dairy support such as construction and animal health and genetics, oil and gas exploration and development, property management as owners seek to rent out property they don’t wish to discount for a sale, insolvency practitioners, education providers and trainers, and legal firms excluding conveyancing activities.