‘‘Time can be a great healer, and pent-up demand can quickly be unleashed when confidence is elevated for a sustained period"
- ANZ
Confidence among New Zealand businesses rose to the highest level in 14 years in July, according to the latest business outlook survey by ANZ. 53% of respondents expect more favourable times ahead, up by 3 points in June, reaching the record high since April 1999. The nation's manufacturing sector, which was the least upbeat, increased 5 points in July, whereas construction, the most optimistic sector, fell slightly. Companies' assessment of their own business situation stays high, with the indicator inching down just one point from last month's three-year high to 44% in July. Additionally, the survey showed that firm's expectations rose to the highest level in 14 years of 29%. Investment intensions weakened form 10-year high recorded in June, but remained at a level of 20, which was the second highest in eight years.
Factors, which drove the confidence up, included high house prices, low interest rates, high dairy prices, increasing net migration and Christchurch's rebuild. ANZ's growth indicator showed a 3.9% increase in economic growth by the end of the year.
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