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

 


New Zealand well ahead of Australia in business confidence

EMBARGOED FOR RELEASE 1AM THURSDAY, JULY 11, 2013
Media release
11 July 2013
New Zealand well ahead of Australia in business confidence

New Zealanders looking across the Tasman at the “lucky country” and thinking their futures lie there might have second thoughts following the recent Grant Thornton International Business Report (IBR).

Not only does it show New Zealand business confidence levels are nearly five times higher than Australia, but in other key areas such as employment, profitability and exports our Tasman neighbours lag well behind.

Paul Kane, partner, Privately Held Business, Grant Thornton New Zealand Ltd, said the second quarter figures for New Zealand remained strong against the rest of the world, but with some softening in two key areas - employment and profitability.

“Of the 44 countries surveyed New Zealand ranks seventh in confidence at 60%, behind Chile 88%, Peru 86%, United Arab Emirates 86%, Philippines 84%, India 75% and Mexico 62%.

“Australia on the other hand is ranked 31st on 13%, having dropped 10% since the first quarter of 2013. New Zealand dropped only 1% in that time.

“That’s a substantial drop for Australia and reflects the impact of the slow down of China on their economy, especially mining, and the tense local political scene with their impending general elections,” he said.

The big international movers in the last quarter, and what will be good news to New Zealand exporters, is the lift in business confidence levels in the United States, up 24% to 55%, a place behind New Zealand, and a 35% increase in the United Kingdom, which lifted their confidence to 34% overall.

“The one area of concern for the New Zealand economy is the decline in the number of companies looking to increase staff over the next 12 months. Although it is still a healthy 20% and we sit roughly at the mid-point when compared with other countries, it has dropped 9% in the last quarter and is down 10% on this time last year.

“Australian figures were twice as bad with a 16% decrease compared with last quarter to 12%.

“This significant decline is probably due to the lack of confidence on the economic front in Australia (46% uncertainty) in comparison to New Zealand’s (24%).  Companies are not going to hire new staff if they don’t know where the economy is going,” he said.

Not surprisingly, New Zealand businesses were well ahead of their Australian counterparts with a strong 58% thinking profits would increase in the next 12 months compared with 32% in Australia. For New Zealand this was slightly down compared with the first quarter.

“Our exporters are also more bullish than our Australian counterparts, despite our overvalued dollar. We were at 18% compared with Australia’s 11%.

“While there is still some uncertainty internationally of where the global and national economies are heading, New Zealand is well placed on all fronts which should see our confidence levels compared with both Australia and other countries remain relatively strong,” he said.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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