XE Data Update - NZ Business Confidence Release
The final ANZ Business Confidence & Own Activity Outlook data for May have just been released.
Business Confidence for May
jumped sharply (less
-41.8% vs -66.6% (previous survey)
Firms’ Own Activity Outlook for May
jumped sharply(less negative)
-38.7% vs -55.1% (previous survey)
ANZ released preliminary numbers in mid-May. Today’s final numbers were also an improvement on the preliminary figures.
- A net 39% of firms expect weaker activity for their own business, still well below 2008/09 lows. The retail sector is the most pessimistic on this front.
- Although we are making progress opening the economy, Business Outlook activity indicators are improving painfully slowly. Expected profitability, investment and employment intentions, lifted but are all still deeply negative.
- A net 42% of firms intend to lay off staff (just over half before subtracting the positives), with retail the hardest hit and agriculture the least.
- Inflation expectations were unchanged at 1.3%, sitting near the bottom of the RBNZ's 1-3% CPI target range.
The NZD is little moved in immediate response
Current indicative levels are: