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

 

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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