Business sentiment little changed, many worries about Europe

Kiwi business sentiment little changed, but many worries about Europe

Our monthly BNZ Confidence Survey has revealed little change in sentiment from a month ago with a net 3.2% of the 439 respondents expecting the economy to improve over the coming year compared with a net 2.2% expecting a deterioration one month ago and 6.% expecting an improvement two months ago. Sentiment has been steady for three months following a strong decline in October as worries about Europe soared.

With regard to individual sectors we find that residential real estate remains characterised by a continuing listings shortage in many areas but with buyers still cautious and most vendors in little hurry to move. Accountants and lawyers appear slightly busier than usual which we take as a sign of improving underlying economic activity. But businesses appear to still be exercising spending restraint with media and advertising weak, poor printing and packaging, construction very mixed, and little indication of rising finance demand outside of housing (first home buyers).

Many respondents mentioned concerns about Europe and events there clearly have strong capacity to cause improvement or deterioration in NZ business sentiment and therefore spending and hiring decisions over the next few months.

Full Survey - pdf file

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