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

 

NZ business confidence ebbs in November

NZ business confidence ebbs in November, holds near 10-year highs

By Paul McBeth

Nov. 26 (BusinessWire) – Business confidence ebbed this month as firms grew more cautious about the pace of New Zealand’s economic recovery as the global economy manages only a tepid revival, according to the National Bank Business Outlook.

The series has a strong correlation to the New Zealand Institute of Economic Research’s Quarterly Survey of Business Opinion, which is closely followed by the central bank. A net 43.4% of respondents expect better times in the coming year, down 5 percentage points from a net 48.2% a month earlier.

“Despite the turn lower, it is hard to describe the level of confidence as anything but healthy,” said Khoon Goh, senior markets economist at ANZ National Bank.

New Zealand’s economy climbed out recession in the second quarter after falling into its first prolonged contraction in a decade. Business confidence surged to a 10-year high as the resurgent housing market stoked the revival in economic activity, much to the Reserve Bank’s chagrin, which has advocated an export-led recovery to help rebalance the economy and boost household saving.

The drop mirrors a fall in consumer confidence, which declined this month after four months of consecutive growth, amid preparations for the Christmas shopping season. The looming sale season underpinned retailers’ sentiment about the economy, which was the only sub-group surveyed that recorded an increase in confidence.

Goh said policy makers need to address “unsustainable” government services, though this appears unlikely to happen as they are “judged in the court of public opinion.”

“As Christmas nears, we all look forward to good cheer – here is hoping it does not bring complacency when it comes to the inevitable process of change,” he said.

Construction took the biggest knock in confidence, though it still topped the survey in sentiment, activity expectations, employment, profits and investment, while livestock investment dropped into pessimistic territory at -4.4%, compared to a net 5.2% a month earlier.

Export expectations improved in spite of the persistent strength in the kiwi dollar, which has surged almost 50% from its sib-50 U.S. cents low in March. The kiwi recently traded at 72.62 cents from 72.73 cents immediately before the survey’s release.

Investment expectations edged higher to a net 6.8% of respondents expecting better conditions in the coming year, while fewer businesses expect unemployment to rise, though it’s still at a net 35.2%.

Almost three quarters of respondents expect the Reserve Bank will boost interest rates in the coming year, though Goh said the subdued price intentions means time is still on the central bank’s side.

(BusinessWire)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Westpac NZ: Warns About Sophisticated New Scam
Westpac NZ is warning New Zealanders about a sophisticated new scam that involves a fake Westpac investment prospectus.
The prospectus is formatted to resemble a Westpac document and includes professional-looking imagery... More>>



Campaign For NZ Coastal Tankers : Says Fuel Security At Risk

Three unions representing New Zealand shipping crews are mounting a united campaign to protect New Zealand’s fuel security and save New Zealand coastal tankers... More>>



Tourism: Travel Bubble With Cook Islands Resumes

Cook Islands tourism restarts today, ending a five-month border closure due to COVID-19. Graeme West, General Manager Australasia for Cook Islands Tourism Corporation, said today’s first flight of quarantine-free travel from New Zealand to the Cook Islands is very significant... More>>


Insurance Council of New Zealand: September South Island Windstorm Cost $36.5 M Raises 2021 Extreme Weather Claims Total To $321.6 M

Gale force winds and storms between 9 and 13 September 2021 resulted in insurers supporting communities to the tune of $36.5 m. This is a significant rise, of $16.7 m, on preliminary figures for the event and lifts the end of year total for all extreme weather events in 2021 to $321.6 m... More>>


Statistics: Building Consents Hit New Highs In November
There were a record 48,522 new homes consented in the year ended November 2021, Stats NZ said today. This was up 26 percent compared with the year ended November 2020... More>>

Fonterra: Revises Milk Collection Forecast
Fonterra Co-operative Group Limited today revised the forecast for its 2021/22 New Zealand milk collections to 1,500 million kilograms of milk solids (kgMS), down from its opening forecast of 1,525 million kgMS... More>>