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

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news