New Zealand Business Confidence Rises

12 April 2012 09:00am - Jack Stupple

New Zealand Business Confidence Rises

The New Zealand Institute of Economic Research (NZIER) released its quarterly survey of business opinions showing that New Zealand business confidence rose in the first three months of 2012. 13% of firms surveyed expected general business conditions to improve in the next 6 months, a considerable improvement from their previous survey of 0% optimism. On a seasonally adjusted basis a net 24% of firms predict general business conditions to improve from 3% who previously expected deterioration. 24% also saw a rise in their own activity from 13% in the previous survey.

NZIER principal economist Shamubeel Eaqub said, “The survey shows most indicators are going sideways, suggesting a gradual and patchy economic recovery.” He added, “The pace of recovery is modest and has not accelerated in the past nine months.”

Trading activity in businesses rose to 0% from -3%. This was consistent with economic growth around a 2% annual apace. Gross domestic product expanded 1.8% in 2011.  Labour market conditions also stabilised, consistent with slow growth in jobs and wages.