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

 


NZ business confidence climbs to 19-month high, exports lag

NZ business confidence climbs to 19-month high, with exports the laggard

Feb. 28 (BusinessDesk) – New Zealand business confidence rose to a 19-month high this month, with gains in all five sectors tracked as companies become more bullish about investment, profits and hiring.

A net 39.4 percent of firms polled in the ANZ Business Outlook expect general business conditions to improve in the year ahead, up from 23 percent a month earlier. A net 38 percent of firms are more optimistic about their own prospects, up from 31 percent.

The monthly survey follows other signs that the economy is picking up. The benchmark NZX 50 Index of leading companies is at a five-year high, retail sales are growing and consumer confidence is at a 32-month high.

Export intentions were the outlier, according to ANZ chief economist Cameron Bagrie. A net 13 percent of firms expect to increase exports in the next 12 months, below the long-term average of 32 percent.

“The main culprit is obvious – a New Zealand dollar that continues to be out of line with local fundamentals,” Bagrie said.

Profitability expectations rose to 14 percent from 8.8 percent, while a net 16 percent aimed to increase investment, up from 14 percent. Hiring intentions rose to 11 percent from 8 percent.

Inflation expectations nudged up to 2.31 percent from 2.23 percent, while ease of credit retreated to 8.5 percent from 15 percent. A net 18 percent planned to raise3 prices over the next 12 months, from 15 percent in the previous month’s survey.

By sector, construction firms were the most bullish on the general economy, at 50 percent, though on their own activity in the next 12 months the reading slipped to 35.7 percent. Agriculture was the least confident, with a net 6.5 percent seeing a general improvement in business conditions and a net 23 percent seeing a pickup in their own business.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news