NZ business confidence falls to 2-year low 30 Sep 2014
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Unemployment rate falls from 7.1 to 6 percent Recruitment
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
NZ business confidence falls to 2-year low as election jitters weighed in September
By Suze Metherell
Sept. 30 (BusinessDesk) - New Zealand business confidence declined for a seventh month in September, to the lowest level in more than two years, as election uncertainty added to concerns about slowing economic growth, according to ANZ Bank's latest Business Outlook survey.
A net 13.4 percent of respondents were optimistic business conditions would improve in the coming year, down from a net of 24.4 in August, and 58 points below the 20-year confidence high in February. Those picking their own activity to get better edged up to a net 37 percent, from 36.6 percent the previous month.
The survey was taken before the results of New Zealand's Sept. 20 general election were known, and ANZ expects next month's survey will reflect Prime Minister John Key and his National government returning for a third term.
"Businesses hate uncertainty," said Cameron Bagrie, ANZ's chief economist. "When survey responses were received the outcome was unknown. Businesses looked, sighed, and signaled a willingness to carry on as normal."
Since the start of the year, expectations for New Zealand's economic growth have slowed, withTreasury last month cutting its forecast for gross domestic product growth to 3.8 percent in the year ending March 31, 2015, from a previous estimate of 4 percent. A faster decline in terms of trade from the highest levels in 40 years, a sharp drop in international dairy and log prices, New Zealand largest and third-largest export commodities, and a slower pace of domestic inflation suggest economic momentum may be slowing.
"Decelerations in growth can be perceived as downturns," Bagrie said. "The cycle is now maturing from strong growth rates off lows to moderate growth off good levels."
Meanwhile, the agricultural sector is firmly in the red, with a net 32.4 percent expecting business conditions to deteriorate, compared with last month's 34.4 percent. The construction sector was the most positive in the month, with a net 26.1 percent expecting conditions to improve, while the service industry had a net 23 percent expecting improvement.
In line with a slower pace of growth, earlier this month Reserve Bank governor Graeme Wheeler paused in raising the official cash rate, in order to assess the impact of four hikes since March, which raised the benchmark interest rate 100 basis points to 3.5 percent.
Today's survey shows expectations for inflation decreased to 2.46 percent from 2.51 percent, while those expecting higher interest rates fell to a net 50.6 percent from 66.6 percent. Those expecting their exports to increase rose to a net 22.1 percent, from 19.5 percent.
A net 21.3 percent of businesses planned to hire more staff, up from 18 percent the previous month, while a net 20.3 percent expected to increase investment, rising from 16.8 percent. Of the firms surveyed, a net 19.2 percent expected to increase profits, down from 20.7 percent in August.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more