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

 


NZ business confidence slips from 20-yr high, stays elevated

NZ business confidence slips from 20-year high, remains elevated

By Suze Metherell

March 31 (BusinessDesk) – New Zealand business confidence slipped from a 20-year high in March, while remaining at elevated levels consistent with broad economic momentum.

A net 67.3 percent of firms are optimistic about general business conditions this month, down from 70.8 percent in February, which was the highest level since March 1994, according to the ANZ Business Outlook survey. Confidence across all major subsectors was above 50 percent, a sign of broad-based economic expansion.

Firms expecting to raise prices declined to 30.2 percent from 32.9 percent, while inflation expectations rose to 2.61 percent, from 2.57 percent in February, and the expectation of interest rate increase decline to 85.7 percent from 90.2 percent the previous month.

The slight easing in confidence comes after the Reserve Bank of New Zealand became the first western central bank to raise interest rates to prevent the build-up of inflationary pressures in the economy.

Despite currency headwinds export intentions bucked the decline and rose to 32.3 percent from 31 percent.

“There are frictions and tensions to manage,” ANZ Bank New Zealand chief economist Cameron Bagrie said of the rising inflation, increasing interest rates and strong currency. “We’re after enduring economic expansion, as opposed to being left gasping by a flash in the pan growth spurt.”

Firms’ expectations of their own business eased to 58.2 percent from 58.5 percent the previous month. Expected profitability slipped 3.6 points to 40.1 percent. A net 26.6 percent expected to hire more staff, down from 32.4 percent in February, but buoyed by 44.4 percent hiring expectation in construction.

Investment intentions fell to 30.7 percent from 35.2 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news