-ANZ
Kiwi economy is on the mend, with strong exports and domestic demand, as well as with elevated levels of confidence. Companies feel more confident, with expectations for higher employment, investment and profit. With the RBNZ raising its official cash rate, economic optimists continue to dwarf pessimists.
A gauge of business confidence, published by the ANZ eased slightly in April, hitting 64.8 from 67.3 a month earlier, still hovering highly above the zero mark, where any level above it indicates net optimism. A sub-index of companies' activity expectations turned lower to 58 from 53, and despite a deterioration is still almost double the long-term average. The worrying sign is the second consecutive drop in profitability expectations. At the same time, a net 30% of companies expect to be hiring more staff.
Inflation expectations practically remained unchanged at 2.59% versus 2.61% a month earlier. Survey results translates into economic expansion of about 6% in the middle of this year. The ANZ, however, does not believe in such a scenario, but there are no doubts the economy is poised for a solid growth in the coming months. New Zealand economy is projected to be the fastest growing economy amid OECD countries.
© Dukascopy Bank SA