WELLINGTON: New Zealand business confidence has slipped from a seven-month high as sentiment waned in retailing, manufacturing, agriculture and construction.
A net 30 percent of firms were optimistic about the general economy in April, down from 35.8 percent in March, according to the ANZ Business Outlook. Sentiment improved in the services sector.
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The survey shows business confidence remains sturdy, recording the third straight month of net optimism after six consecutive months of pessimism.
The biggest decline in April came from export intentions, which dropped to 23 percent from 32 percent in March, likely driven by the high New Zealand dollar.
“Business confidence remains elevated, despite easing in April,” said Cameron Bagrie, ANZ Bank New Zealand chief economist.
The latest survey is “consistent with an economy entrenched in a robust and steady economic expansion. We continue to pencil in three percent growth over 2015. That’s still centre-court performance”.
Firms’ own activity expectations slipped one point to what Mr Bagrie called a “lofty” 41 percent, well above the historical average of 27 percent.
Those planning to hire more rose to 22 percent from 21 percent, while profit expectations eased back to 26 percent from 30 percent.
