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

 

Optimism increases despite Reserve Bank threats

13 December 2006

Business optimism increases despite Reserve Bank threats

Business confidence is continuing to rise despite threats by the Reserve Bank to increase interest rates early next year and a fall in the terms of trade.

For the fifth successive quarter, the level of business optimism has increased in regard to how Auckland businesses view both the economy’s overall performance and how they assess their own prospects in the period ahead.

A year ago, just 7% of Auckland businesses believed the general business situation would improve during the first six months of this year. When asked the same question earlier this week, 23% of the more than 800 Auckland Chamber of Commerce members who took part in the quarterly survey predicted the environment for doing business would improve during the first six months of 2007.

Similarly, in respect of how businesses see their own business prospects over the next six months, 53% predict they will improve compared with just 35% of this view last December.

“Widely reported claims by economic commentators last year predicting a fall in business optimism through 2006 have turned out to be 100% wrong,” said Auckland Chamber of Commerce chief executive Michael Barnett. “In fact, the exact opposite trend has occurred as business confidence has steadily improved throughout the year.”

In December last year nearly 60% of businesses were predicting the business environment to deteriorate in 2006. But in every survey since, the level of pessimism has dropped with just 18% now picking that the business environment will get worse next year.

Despite recent warnings from the Reserve Bank that interest rates may be forced to rise next year, 37% of respondents believe they will increase compared to 43% of this view at the last survey in September. Similarly, a recent fall in New Zealand’s terms of trade has been ignored by business in assessing their prospects in the period ahead.

Mr Barnett suggests that part of the explanation for the improved optimism could relate to a growing belief that the Government is serious in wanting to encourage business to improve productivity and address basic infrastructure issues such as transport and energy.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Commerce Commission: Appeals Record $2.25m Fine In Vodafone FibreX Case

The Commerce Commission has filed an appeal in the High Court against a record $2.25 million fine imposed on Vodafone NZ Limited (Vodafone) for its offending under the Fair Trading Act during its FibreX advertising campaign. While the sentence imposed in the Auckland District Court on April 14 was the largest-ever fine under the Fair Trading Act, the Commission will argue that it is manifestly inadequate... More>>



All District Health Boards: Historic Pay Equity Settlement

An historic agreement has been ratified that addresses a long-standing undervaluation of a workforce that is critical to the smooth running of our hospitals and the delivery of healthcare... More>>


MPI: Dry Autumn In Waikato And South Auckland Leads To Drought Classification Drought conditions affecting the primary sector in the Waikato and South Auckland were today classified as a medium-scale adverse event, enabling a package of support for farmers and growers... More>>


Barfoot & Thompson: Rents Up By Around 3% In Most Areas

The average weekly rent paid for homes in most areas of Auckland has risen by around 3 percent year-on-year. The figures for end March from more than 16,000 properties... More>>


DoC: Smeagol The ‘Gravel Maggot’ Leaves Its Rare Mark On The Remote West Coast
An extremely rare species of sea slug or ‘gravel maggot’ has been detected for the first time on a remote beach in South Westland... More>>



Immigration: Annual Net Migration Loss Of 7,300

The provisional net loss of 7,300 people in the year ended March 2022 was the lowest net migration for a March year since 2012, Stats NZ said today... More>>