Confidence Survey: Pessimism Declines Further
BNZ Confidence Survey, 7 November 2006
Many thanks to all of those who contributed to our monthly survey. As with many other economic indicators we have recorded a decrease in pessimism to a net 10% of respondents now being worried about the economy over the next 12 months compared with 19% in October and 65% a year ago. There is obvious pessimism in the dairying and forestry sectors but in other parts of the economy things are more mixed. Shortages of labour continue, margins are tight, and there are worries about compliance costs. Worries about fuel prices have backed off considerably in light of the sharp fall in petrol prices. In residential real estate rent increases remain a rarity and listings remain in short supply generally.