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

 


NZ business confidence gains as profit outlook improves

NZ business confidence gains as profit, hiring and investment intentions rise

Nov. 29 (BusinessDesk) - New Zealand business confidence rose this month as firms became more upbeat about the outlook for profits, hiring and investment. Canterbury was the most upbeat region.

A net 26 percent of respondents in the ANZ Bank Business Outlook expect general business conditions to improve in the year ahead, up from 17.2 percent in the previous month’s survey. Those expecting a better 12 months out of their own businesses rose to 32 percent from 25.5 percent.

Improved hiring intentions bode well for an economy where the unemployment rate is 7.3 percent and Australia is seen as a good choice for an increasing number of kiwi workers. Hiring intentions were firmest in the construction sector, with a net 31 percent of companies planning to take on more workers as the rebuild of Christchurch picks up steam.

Strong readings in Canterbury “tie in with increasing signs of rebuild-related activity, a dynamic that will become more pronounced in the economic data over 2013,” said Cameron Bagrie, chief economist at ANZ Bank New Zealand

At the same time there’s little concern about rising prices, with inflation expectations slipping back to 2.24 percent, the lowest since October 1999, from 2.36 percent in last month’s survey.

That meshes with perceptions in the Reserve Bank's survey of expectations this week and underlines that there’s little pressure on the bank to hike interest rates any time soon. The next monetary policy statement is scheduled for release on Dec. 6.

Exports remain the weak spot in the economy, Bagrie said. A net 17 percent of exporters are expecting a pickup in the year ahead, up from 14 percent in the previous month though still at a “timid” level. The high kiwi dollar is probably the root cause.

The New Zealand dollar recently traded at 82.39 US cents from 82.11 cents yesterday. The currency has held above 80 cents since early September.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news