- NZIER
New Zealand's business confidence remained solid in the final quarter of 2014, with the nation's economy's buoyancy encouraging business growth. According to the New Zealand Institute of Economic Research, Business Opinion gauge climbed to 23 in December up from 19 in the preceding quarter, with any number above zero indicating optimism. The survey showed retailers were the most upbeat, with the optimism being underpinned by strong sales growth in the Christmas shopping period. NZIER also highlighted that optimism, activity, hiring and a number of other indicators recovered in the three months through December in 2014 from moderation in the previous two quarters. However, cost and inflationary pressures remained subdued.
Robust economic growth in the South Pacific country over the past two years has been supported by construction activity in the midst of the Canterbury rebuild and amid solid house-price inflation in Auckland, while record immigration flow has also underpinned to demand in the economy and for housing. However, with consumer price inflation still running at the lower end of the Reserve Bank of New Zealand targeted band in the medium term, there has been less pressure to hike interest rate, keeping businesses and consumers upbeat.
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