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

 


NZ economy took off in Dec quarter, survey indicates

NZ economy took off in Dec quarter, survey indicates

Jan. 15, (BusinessDesk) - New Zealand's economy surged in the December quarter to the best level since mid-2007, according to the Quarterly Survey of Business Opinion, which shows firms are more optimistic and output is increasing across the board.

The survey, conducted by the New Zealand Institute of Economic Research (NZIER), shows a rebound in activity, particularly in Canterbury but also a "very good lift" in Auckland.

The survey's measure of business confidence rose to plus 19 percent in the December quarter from minus 1 percent in the previous quarter.
A positive reading indicates more optimists that pessimists.

The trading activity indicator surged to best level since mid-2007, rising to plus 8 percent from minus 4 percent in the previous quarter.

"Capacity pressures are intense in Canterbury, but there is little pressure in the rest of the country," said NZIER principal economist Shamubeel Eaqub.

"Firms do not intend to raise prices much. Consumer price inflation will remain low," he said, predicting that the Reserve Bank of New Zealand will keep interest rates on hold for some time.

The NZIER survey results are consistent with annual growth of above 2 percent for 2012.

NZIER said that the pickup in the economy is not yet flowing through to the labour market. New hiring remains subdued and labour is getting a little easier to find outside Canterbury.

It was surprising that there was not more competition for labour as the economy picked up, NZIER said.

"This part of the recovery remains absent," Mr Eaqub said.

Expectations of domestic trading activity surged to plus 22 percent from plus 9 percent in the previous quarter.

Activity has increased across all industries but the strongest sector is building because of Canterbury. Manufacturing activity rebounded and merchants reported stronger retail spending. The service sector is gradually increasing sales.

There were too many risks in the global economy for the Reserve Bank to be proactive in raising interest rates, Mr Eaqub said.

"It's a very nice finish to 2012," he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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