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

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news