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28 Nov 2013
New Zealand business confidence jumps just shy of a 15yr high!
FXstreet.com (Barcelona) - New Zealand business confidence sentiment rose significantly in November, lifted from 53 to 61, just shy of a 15-year high for the series.
As Cameron Bagrie, Chief Economist at ANZ, notes: "Business sentiment is riding a wave of optimism, with a lift in business
confidence measured right across the board. Our composite indicator, incorporating both business and consumer confidence, is signalling potential for annual economic growth of around 5% by mid-2014... we agree with the spirit of strong growth ahead."
ANZ official report
"On a major divisional basis the retail sector recorded the largest lift in confidence in November, rising from +48 to +70, the highest across the five major divisions and the sector’s highest reading since July 1994. A fresh record was also set at the other end of the sectoral scale. The agriculture sector reported the lowest level of business confidence, but at +51, it has been nearly 20 years since the lowest sectoral level of optimism was this high."
"Firms’ expectations regarding their own business prospects were unchanged, at a 14½-year high of +47. On a sectoral basis, own activity mimicked the theme in general business sentiment. The retail sector topped the lot at +53, while at the opposite end of the spectrum the agriculture sector recorded the lowest reading, at +39. And similar to general business confidence, the lowest-ranked sector ratcheted up to a 19-year high."
"Expected profitability and labour hiring both hit 19-year highs, with respective net balances of +37 and +23. Expected profitability was the highest in the agriculture sector, while anticipated employment growth was the highest for the construction sector. These results reflect the positive tailwinds for the economy at present – high commodity prices and a resurgence in house construction, underpinned by the Canterbury rebuild."
As Cameron Bagrie, Chief Economist at ANZ, notes: "Business sentiment is riding a wave of optimism, with a lift in business
confidence measured right across the board. Our composite indicator, incorporating both business and consumer confidence, is signalling potential for annual economic growth of around 5% by mid-2014... we agree with the spirit of strong growth ahead."
ANZ official report
"On a major divisional basis the retail sector recorded the largest lift in confidence in November, rising from +48 to +70, the highest across the five major divisions and the sector’s highest reading since July 1994. A fresh record was also set at the other end of the sectoral scale. The agriculture sector reported the lowest level of business confidence, but at +51, it has been nearly 20 years since the lowest sectoral level of optimism was this high."
"Firms’ expectations regarding their own business prospects were unchanged, at a 14½-year high of +47. On a sectoral basis, own activity mimicked the theme in general business sentiment. The retail sector topped the lot at +53, while at the opposite end of the spectrum the agriculture sector recorded the lowest reading, at +39. And similar to general business confidence, the lowest-ranked sector ratcheted up to a 19-year high."
"Expected profitability and labour hiring both hit 19-year highs, with respective net balances of +37 and +23. Expected profitability was the highest in the agriculture sector, while anticipated employment growth was the highest for the construction sector. These results reflect the positive tailwinds for the economy at present – high commodity prices and a resurgence in house construction, underpinned by the Canterbury rebuild."