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

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news