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

 


NZ business confidence slides in June amid rising rates

NZ business confidence slides in June amid rising interest rates

June 30 (BusinessDesk) - New Zealand business confidence slid this month and rising interest rates have been fingered as the culprit.

The high currency, lower dairy and forestry prices and a levelling in the property market are also being cited as economic downers.

A net 43 percent of respondents in the ANZ Bank Business Outlook survey for June expect general business conditions to improve in the year ahead, down from a net 54 percent in the previous month’s survey. Those expecting a better 12 months out of their own businesses fell to 46 percent from 51 percent, the lowest in nine months but still well above the long-run average.

“It’s important to remember that this decline in confidence has been desired – and at least partly engineered - by the Reserve Bank,” said Cameron Bagrie, chief economist at ANZ Bank New Zealand. “The level of confidence remains very high by historical standards, but is now starting to look a little more realistic.”

A net 24 percent of companies are planning to take on more workers in the next year, well down from the peak of 32 percent in February but above the 10-year average of five percent.

Export intentions at a net 20 percent are their lowest in a year.

Expected profitability has now fallen for four consecutive months, but the falls are getting smaller. A net 29 percent of firms expect higher profits.

A net 52 percent of firms expect an uplift in residential construction and a net 36 percent expect a rise in commercial construction. Both are down on May.

The central bank is likely to be pleased with the inflation indicator in the survey with a net 25 percent of firms expecting to raise prices during the next year, down 3 points from May. Still, in the hot construction sector, a net 54 percent of firms expect prices to rise.

New Zealand’s trade-weighted currency index hit a record high on Friday and the kiwi touched a three-year high against the greenback. The kiwi was recently at 87.63 US cents and the TWI was 81.33.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: Weak Dairy Prices Prompt Pull Back In Fonterra Forecasts

Weak global dairy prices have prompted analysts to pull back their expectations for Fonterra Cooperative Group's payout to farmers for next season. More>>

Broadband Network: Spark Launches New, Competitive Ultra Fibre Plan Line-Up

Spark is giving customers an even more compelling reason to switch to its Ultra Fibre plans from today with the introduction of new competitive pricing for the majority of its plans (details below) and Fibre Landline (voice-over-fibre technology) for ... More>>

Employment: ANZ Proposes Casualisation In Whangarei Stores

ANZ workers in Whangarei could see their incomes drop by 20 to 40 percent if the bank’s proposal to reduce the number of full-time positions goes ahead says FIRST Union national organiser Tali Williams. More>>

Finance: BNZ Develops Specialist Tāmaki Māori Banking Team

BNZ develops specialist Tāmaki Māori Banking Team to support Māori as Auckland grows More>>

Pharmaceuticals: Commerce Commission To Consider Pharmaceuticals Merger

The Commerce Commission has received an application from Pfizer Inc. seeking clearance to acquire all of the shares in Hospira Inc. More>>

Real Estate: Housing Unaffordability Issues Spread

Surging house prices in Auckland and Queenstown last month pushed home ownership even further beyond the reach of first home buyers in the two districts, according to the AMP360 Home Loan Affordability Report for March. More>>

Statistics NZ: Annual Exports To China Dip Below Australia

The value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, Statistics New Zealand said today. More>>

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news