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

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news