- Cameron Bagrie, ANZ Bank New Zealand chief economist
New Zealand businesses marked an optimistic end to 2015, with confidence surging to the highest level since April as recent economic data pointed to robust growth in the year ahead. The ANZ Business Confidence Index increased from 14.6 in November to 23.0 this month, with a reading above zero shows optimists outnumber pessimists. On companies' own activity, a net 34.4% anticipate to see growth, up from 32% in November, while a net 17.7% expect a bigger profitability in the coming year, compared with 14.9%. However, firms lowered their export expectations to a net 19.3% from 22.8% in the previous month.
The confidence index came just a day after data showed the New Zealand's economy grew 0.9% in the third quarter, outperforming expectations for a 0.8% expansion. The Reserve Bank of New Zealand cut the official cash rate from 2.75% to 2.5% and pointed that inflation was likely to hit the central bank's 2% target midpoint without additional measures. However, inflation was at just 0.4% in the third quarter. Recent strength in the New Zealand Dollar dampens chances of an increase in import prices and inflation hitting the targeted level.
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