New Zealand business confidence improves, building permits decline in March

Note: This section contains information in English only.
Source: Dukascopy Bank SA
"We expect inflation to strengthen as the effects of low oil prices drop out and as capacity pressures gradually build"
-  RBNZ

New Zealand firms were more upbeat about the economic outlook this month as a sturdy construction sector remains central to the country's growth in the coming year, while retail, construction, and service firms felt the biggest boost in confidence. The ANZ Business Outlook survey showed that a net 6.2% of New Zealand companies were optimistic about general business conditions and the economy in April, up from 3.2% in March. Some 32% predict their own activity to increase, compared with 29% a month earlier. Construction is still the most optimistic sector in terms of the wider economy and its own activity, and residential investment intentions were unchanged at 36%, while commercial construction intentions slipped to 24% from 30%. ANZ report showed the agriculture sector was the most pessimistic with a net 27% anticipating the economy will deteriorate over the coming year, and just 6% expect their own activity to improve.

A separate report showed new residential building approvals fell steeply in March after climbing at the fastest rate in seven months in February. New Zealand building consents dropped a seasonally-adjusted 9.8% month-on-month in March, according to Statistics New Zealand, after surging a revised 10.3% in February.


© Dukascopy Bank SA

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