Business confidence is the highest it has been for more than 14 years, with 53 per cent expecting better times.
The ANZ Business Outlook said business confidence rose 3 points this month to the highest level of confidence since April 1999.
New Zealand’s manufacturing sector, which was the least optimistic, rose 5 points in July, while the most confident sector, construction, eased slightly
ANZ said firms remained confident of their business situation, dropping from last month’s three-year high to a net +44 confidence in July.
The survey showed that profit expectations for New Zealand firms had risen to a 14-year high, and employment intentions were down slightly to the second-highest level in three years.
Confidence was up because of high house prices, low interest rates, high dairy prices, rising net migration and Christchurch’s rebuild.
ANZ said New Zealand was “doing the basics well”.
“Time can be a great healer, and pent-up demand can quickly be unleashed when confidence is elevated for a sustained period,” it said.
ANZ’s growth indicator signalled a 3.9. per cent lift in economic growth by the end of this year.
(Source – http://www.stuff.co.nz/business/industries/8986273/Business-confidence-hits-14-year-high)