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


Word of warning for NZ businesses amid rise optimism

Word of warning for NZ businesses amid rise in international optimism: global survey

2 February 2018

Global survey findings from Grant Thornton’s latest International Business Report (IBR) reveal that global business optimism is continuing on a positive trajectory.

In the Asia Pacific region, optimism has increased significantly, leaping to an historic high of 58% over the last year and APAC GDP growth is forecast to reach 5.5% this year, ahead of global projections.

New Zealand business optimism remains at 68% compared to last quarter after a slight, but expected slump around election time, dropping from 80%. The New Zealand Institute of Economic Research has noted the decline in confidence was less severe than in previous election years.

New Zealand continues to pull ahead of Australia, who sits at 60%.

“Revenue and profitability forecasts are also starting to soar globally since last quarter, and are at their highest since before the global financial crisis; businesses are expecting to see both continue to rise,” says Paul Kane, Partner, Privately Held Business, Grant Thornton New Zealand.

“However, firms must avoid short-termism and increase their investment in long-term growth.

“Unfortunately, the IBR has revealed that investment in employment and technology is starting to slip among Kiwi businesses surveyed, and investment in plant and machinery has declined to an historical low of six per cent. Meanwhile a lot of our global counter parts are boosting investment in these areas.

“New Zealand businesses will need to meet growing demand through hiring more staff and the move towards automation presents opportunities for businesses to invest in technologies to increase productivity”.

“We are fast approaching the peak of the current economic cycle. Businesses need to start thinking about what they can do to leverage opportunities in the current environment to ensure the party doesn’t stop when the global economy comes off its current high,” says Kane.

- ends –

© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: David McLean Appointed As KiwiRail Chair

David McLean has been appointed as Chair of KiwiRail Holdings Ltd, the Minister for State Owned Enterprises Dr David Clark and Minister of Finance Grant Robertson announced today... More>>

Dairy NZ: ‘More Milk From Fewer Cows’ Trend Continues In A Record Year
Vodafone says it has 10,000 customers using its Wi-Fi Calling service. It took less than three months to reach that milestone; the service began operating in September... More>>

Statistics: Consents Remain At Record Levels
There were 47,715 new homes consented in the year ended October 2021, up 26 percent compared with the year ended October 2020, Stats NZ said today. "The year ended October 2021 marks another record for the annual number of new homes consented,” construction statistics manager Michael Heslop said... More>>

Fonterra: Lifts Forecast Farmgate Milk Price Range And Revises Earnings Guidance At First Quarter Update

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range, reported a solid start to the 2022 financial year and revised its earnings guidance... More>>

Canterbury Museum: New Research - Bald Haast's Eagle Feasted On Moa Guts

New Zealand’s extinct Haast’s Eagle (Hieraaetus moorei), the largest known eagle, gulped down viscera like a vulture and may even have been bald, new research suggests... More>>

ABC Business Sales: Demand High For Covid-proof Businesses
Despite the continuing challenges facing businesses in this Covid environment, right now there are more buyers looking for a small-medium sized business than there are sellers in the market... More>>

PriceSpy: Producer Prices Increase
New Black Friday and Covid-19 Report* released by PriceSpy says people’s fear of stepping inside physical shops during big sales events like Black Friday has risen since last year; Kiwis are still planning to shop, but more than ever will do it online this year... More>>