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


Business Confidence On The Road To Recovery

Data Flash (New Zealand)

The latest NBNZ business survey shows a recovery in confidence from -18% (net respondents) to -2%.

Similarly, firms' expectations regarding their own trading prospects have recovered, from +16% to +28%, with a rise from + 17% to +26% if usual seasonal variations are being taken into account.

The trading prospects series has historically been a good indicator of activity going forward (see chart). Its current level may suggest that GDP will not slow as much (to around 1.5% yoy) as assumed by the RBNZ and by us in the macroeconomic forecast updates released over the past month.

Improved sentiment is also reflected in investment and employment intentions, as well as profit expectations. The rebound in export expectations is particularly noteworthy considering continued global uncertainty. The improved assessment of the residential construction market from +10% to +31% is consistent with other information pointing to increasing buoyancy in the housing market. In line with improved sentiment and activity expectations, retailers' pricing intentions showed a renewed rise from +23% to +29%. That may suggest that there could be more resistance to inflation swiftly falling back to 1.5% than previously thought.

Overall, this survey confirms our central view that the RBNZ's easing cycle has come to an end.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Stats NZ: Prices For Transport And Housing Rise In March 2021 Quarter

Higher prices for transport and housing led to a 0.8 percent lift in the consumers price index in the March 2021 quarter, Stats NZ said today. Prices for getting around rose in the March quarter. Transport prices rose 3.9 percent, the biggest quarterly ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>


Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>