Business confidence reached a six-month high in November, improving for a third straight month.
According to ANZ Bank, the adverse effects of low prices for dairy products and slower housing markets are compensated by the positive effects of tourism, migration, wider housing market strength outside of Auckland and lower NZ dollar. As a result, 14.5 percent of surveyed businesses were confident for the economy in the coming year, and 32 percent even saw their activity expanding.
“After a half-year hiatus, it’s pretty clear the economy is starting to pick up again,” said Cameron Bagrie, chief economist, ANZ New Zealand.
Whilst the service sector appeared to be the most optimistic, agriculture recorded the worst reading with 12.5 percent of businesses being pessimistic. Improvements in profit expectations, employment and investment intentions were observed across all the businesses.