30 July 2004 Media Statement

Confidence figures encouraging - Cullen

“The latest National Bank Business Outlook showing a stronger than expected increase in business confidence is encouraging,” Finance Minister Michael Cullen said today.

“The increase in the important own activity indicator to net 30 per cent positive significantly exceeded market expectations and points to continuing strong momentum in the economy.

“Investment and employment intentions also remain robust,” he said.

“Clearly rising oil prices and rising interest rates will take some of the blush off the rose. And it is important to remember that, although headline confidence has risen sharply over recent months, it is still in negative territory.

“But the results of this survey reinforce what has been a steady stream of good economic data and augur well for the economy’s ability to weather any volatility ahead,” Dr Cullen said.

ENDS

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