ANZ is reporting a dip in its latest business outlook survey, following uncertainty created by the general election result.
A net 30% of businesses expect better times ahead for their own business, down eight points on August.
“Some of the paring back may reflect a maturing business expansion, but we’re more inclined to put the move down to political uncertainty,” the bank says.
A net 0% of businesses are optimistic about the year ahead – the lowest level since September 2015.
However, activity, employment and investment expectations all remain at healthy, according to the survey.
The ANZ is hoping for a quick resolution to the negotiations between New Zealand First and the two major parties.
“The last thing the New Zealand economy needs is a long, drawn-out process mired in policy uncertainty. Business confidence will be key to watch over the coming months.
“Change, that was not sold or communicated well, was a key factor driving business confidence into a funk in 2000, and the economy stalled. The economic wheels need to be inflated, not deflated, to keep turning.”
However, with New Zealand’s relatively simple democracy, comprising one house rather than two “there’s not too much to fret about”, the bank says.
“There’ll be the odd curve-ball no doubt, but we’ll deal with them as they get thrown.”
