Confidence among New Zealand businesses is lacking, ANZ chief economist Cameron Bagrie says.
In the bank’s latest business outlook, only 11% of businesses are optimistic about the year ahead.
That’s down six points on February and takes sentiment back to average levels.
“Sentiment dropped sharply in retailing and construction, and turned negative within the agriculture sector,” Bagrie says.
However it’s not all bad news.
“Although headline confidence has fallen, a net 39% of businesses expect better times for their own business, well above its long-run average of 28,” he says.
Bagrie says the cool-down in confidence is caused by construction intentions dropping from +44 to +25.
“The details of the survey are more positive than the headline. Our confidence composite indicator combines both business and consumer sentiment.
“It is still pointing to pace-setting GDP growth of 3½-4%.”
