New Zealand: Business confidence hits highest reading since March 2014 in October
Latest reading: Business confidence came in at 65.7 in October, up from September’s 60.9. October’s result marked the best reading since March 2014. Reported past activity—which has the strongest correlation with GDP—also improved.
Firms grew more upbeat about their future activity, exports, investment, employment intentions, profits and access to credit.
Outlook: The sustained rise in business confidence in recent months bodes well for business investment. This is in line with panelists’ forecasts for far softer declines in overall fixed investment in H2 2024 compared to H1.
Panelist insight: ANZ Bank analysts, who compiled the business sentiment survey, said:
“The October ANZ Business Outlook survey again showed that steady falls in interest rates are injecting new optimism into businesses. And it’s not just unsubstantiated hope – a smaller net proportion of firms are now reporting that activity is lower than a year earlier, with the sharpest lift for respondents in the construction sector.”