Business sentiment has risen slightly this month

Welcome to the results of our latest BNZ Confidence Survey.

Our first BNZ Confidence Survey for 2012 has found a slight lift in business sentiment to a net 13% of respondents confident that things will be better in a year’s time from 3% in early December. There were a number of expressions of concern about the high currency, compliance costs, and weak consumer demand. Few respondents noted difficulties in sourcing staff and there were noticeably fewer expressions of concern about conditions overseas than in previous months.

In retailing conditions remain extremely tight, residential real estate is improving with more buyers appearing, listings tight, but prices only slowly rising. Agricultural conditions are buoyant and farmers continue to focus strongly on reducing debt levels.

The results are consistent with a view that the pace of economic growth will improve this year. But widespread focus on debt reduction coupled with an absence of household spending strength suggests the year risks being as much of a disappointment as 2011.

Full Report (PDF File)

BUDGET 2012:
Parliament Debate Live - Video Of Budget 2011
Keith Ng Interactive Graphic: How the Budget Breaks Down
BUDGET 2012 - FULL COVERAGE: Reports / Analysis - Press Kit - Reaction (from everybody) - Previews (from everybody) - Pre-Budget Announcements

Gordon Campbell: On the Budget’s Spreadsheet Victories

It wasn’t as if expectations were sky high, exactly. Chances are, it was always more likely that we’d be seeing Bigfoot rampage through the Beehive lock-up than catch a glimpse of a credible growth agenda from this government. More >>

Sludge Budget Report - Short The Dollar! MEMO: To international bankers FROM: C.D. Sludge Please short the dollar! It'll be good for both you and us. And you know you want to. Greexit, Eurogeddon... watch out... flight to quality and all that. Follow your instincts. The NZ Debt Management Office has been so surprised at the unprecedentedly low interest rates that it can borrow at that it has already entirely pre-funded the 2013 fiscal deficit - all $8 billion of it! More >>

Pattrick Smellie Comment: Doddling along the best we can hope forCriticising Budgets for lacking vision or imagination is like shooting fish in a barrel, but even so, this year's Budget again feels like a missed opportunity. Perhaps it's the intrusion of real world needs that means the government couldn't make better political use of the $558.8 million it expects to gather in its first partial asset sale. More >>