New Zealand: Business confidence rises in December
Latest reading: Business confidence increased to 73.6 in December, following November’s 67.1. December’s reading was the highest since March 1994.
Expectations for firms’ own activity increased sharply, rising to the strongest reading in three decades. Assessments of past activity—the series with the strongest correlation to GDP—climbed to the highest level recorded since August 2021. In addition, perceptions of past employment recorded the best outcome since November 2022.
Panelist insight: ANZ Bank analysts, who compiled the business sentiment survey, said:
“Things are clearly looking up. Both past activity and past employment continue to strengthen, and sentiment about the future is improving as a result. Of course, it’s important to remember that the net proportion of firms expecting activity, investment or profitability to go up is just as much a reflection of where they are now as where they expect things to go. The bar for improvement is low.”