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

 


NZ businesses still upbeat, confidence on the wane

NZ businesses still upbeat, confidence on the wane

By Paul McBeth

July 25 (BusinessDesk) - New Zealand firms remained largely upbeat this month, though confidence is still coming off the boil amid falling dairy prices, a strong currency and rising interest rates, according to ANZ Bank's July Business Outlook survey.

A net 39.7 percent of respondents in the survey expect business conditions to improve in the coming year, down from a net 42.8 percent in June. Those picking their own activity to get better was a net 45.1 percent from 45.8 percent in June. Pessimists among rural firms outnumbered optimists for the first time in 14 months, with a net 9.3 percent expecting a deterioration in business conditions.

"Wilting sentiment (from high levels) but mixed nuances in the detail is consistent with an economy that is transitioning into a more sustainable economic expansion (that means growth a tad sower than we’ve seen of late)," ANZ Bank New Zealand chief economist Cameron Bagrie said in his report. "Overall, the suggestion from our survey is that firms are simply getting on with it."

The survey comes after the Reserve Bank signalled a pause in its monetary policy tightening cycle after four interest rate hikes this year, and governor Graeme Wheeler jawboned the currency down 1 US cent yesterday. The central bank has been lifting rates in a bid to cool an accelerating economy to keep a lid on inflationary pressures emerging from a heavy construction programme and strong inbound migration.

Today's survey shows a net 26 percent of firms intend to lift prices over the coming year, up from a net 24.8 percent in June, while 85 percent are picking higher interest rates, up from 77 percent a month earlier. Inflation expectations increased to 2.62 percent from 2.52 percent.

A net 25 percent of businesses plan to hire more staff, and a net 23 percent intend to boost investment. Of the firms surveyed, 26 percent expect increased profits in the coming year, down from 29 percent in June.

A net 56 percent of firms pick a lift in residential construction, up from 52 percent in June, while 25 percent expect more commercial building, down from 36 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news