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

 

NBNZ Business Outlook Survey: August 1999

Economic Note (New Zealand) NZ

Key Points

The NBNZ business confidence index slipped back slightly in August, with a net +20% of respondents now expecting conditions to improve over the next twelve months, down from a net +24% in July. This is the sixth consecutive monthly decline from the recent peak of +68% recorded in February.

Despite the decline in business confidence, respondents' expectations for their own businesses edged up one percentage point to +39% from that recorded last month. Firms' expectations of their own investment intentions eased back, profitability expectations remained flat, while capacity utilisation moved up. On of the external front, export intentions continued to build momentum with manufacturers' export expectations at close to six-year highs. Respondents' expectations for interest rate rises also increased sharply, with a net +60% now expecting an increase over the year ahead.

On the inflation front, pricing intentions were reasonably stable, with a net 12% of respondents intending to raise prices, while annual inflation expectations edged up to 1.9%.

National Bank Business Aug-99 Jul-99 Jun-99 Outlook Survey

Business Confidence +20 +24 +29

Activity Outlook +39 +38 +38

Exports +45 +40 +38

Investment +15 +17 +18

Capacity Utilisation +30 +24 +27



Profits +22 +22 +24

Pricing Intentions +12 +11 +11

Inflation Expectations 1.9 1.8 1.8

Commentary

The modest easing in sentiment for the month appears to reflect the sharp increase in the number of respondents expecting a rise in interest rates later this year. However, despite the slippage in confidence, the less volatile respondents' assessment of their own activity prospects has remained reasonably stable. Perhaps the most significant feature of these data has been the on-going improvement in export expectations. While these trends have yet to be fully translated into merchandise trade data, the prospects for improving trading partner growth rates, together with a more competitive exchange rate, reinforces our expectation for a more balanced activity profile over the year ahead.

This, along with an extensive range of other publications, is available on our web site http://research.gm.db.com

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Zero Gross CO2 Target, Separate Biological Emissions: Environment Commission On ETS

A report about taking an alternative ‘landscape approach’ to Aotearoa New Zealand’s long-term climate change targets and policies has been released today by the Parliamentary Commissioner for the Environment, Simon Upton. More>>

ALSO:

Tax Bill Passes, Drops: “An End To Unnecessary Secondary Tax”

“The changes mean Inland Revenue will more closely monitor the tax paid by wage and salary earners through the year. If it appears the worker is being over taxed, Inland Revenue will suggest a more suitable PAYE tax code tailored to that worker.” More>>

ALSO:

Ethiopian Airline Crash: Boeing 737 Max Aircraft Operations Temporarily Suspended

New Zealand’s Civil Aviation Authority has suspended the operation of Boeing 737 MAX aircraft to or from New Zealand. Currently this affects only one operator, Fiji Airways. There are no other airlines that fly this aircraft type to New Zealand. More>>

ALSO:

Sorting Out DNA: Crime-Busting Software Wins Top Science Prize

Software developed in New Zealand that has contributed to identifying suspects in tens of thousands of criminal cases around the world has won the 2018 Prime Minister’s $500,000 Science Prize. More>>

ALSO:

In The High Court: IRD Wins Tax Avoidance Case

Inland Revenue has won a High Court case against Eric Watson’s Cullen Group over a nearly $52 million tax debt. More>>

ALSO:

Insurers Withdraw From Market: Plea For EQC Rethink

A consumer watchdog wants the government to rethink the Earthquake Commission (EQC) as more people are pushed out of getting property and contents insurance. More>>

ALSO: