World Economy

NZ Business Confidence Tumbles

NZ Business Confidence TumblesNZ Business Confidence Tumbles

New Zealand business confidence tumbled in May as signals on the employment, investment and activity front recede, MarketWatch reported. “The economic patient is beginning to suffer a few palpitations, but there is no need to reach for the defibrillator just yet. Diagnostics remain healthy; most Business Outlook survey indicators still sit north of historical averages,” said ANZ Bank Chief Economist Cameron Bagrie. A net 15.7% of respondents in the monthly survey expected business conditions to improve over the next 12 months, compared with a net 30.2% who had expected an improvement in the prior survey held in April. A net 32.6% expected their own business activity to improve in the coming year versus 41.3% in the prior survey. Bagrie said the waning confidence is “not surprising” as the economy transitions to a more modest pace of expansion. However, “there are clear risks around that transition; declines were broad across the survey and are starting to look more trend-like,” he added.