Fall in confidence disappointing but no surprise
Fall in confidence disappointing but not surprising
"The fall in confidence in the NZIER's September quarter survey of business opinion is disappointing but not surprising," Finance Minister Michael Cullen said today.
"Higher petrol prices, the recent exchange rate volatility and flat domestic demand are squeezing company profit margins, especially in the non-tradeables sector."
But Dr Cullen said it was important not to lose perspective.
"All forecasters have the economy rebounding before the end of this year and growing steadily through the next two years.
"The low dollar is assisting exporters, with manufacturers expecting a stronger lift in export sales over the next three months.
"This growth will eventually flow through to the domestic market," Dr Cullen said.