ANZ New Zealand business survey, preliminary for September, business confidence -7 and activity 18

Author: Eamonn Sheridan | Category: News

Priors ... Business Confidence -14.2% & Activity Outlook 19.2%

Given New Zealand was plunged into lockdown, a very strict one indeed for its largest city of Auckland this is a good report. 

ANZ comment:
  • most forward-looking activity indicators hold up well
  • Business confidence rose
  • own activity expectations were relatively flat
  • Employment and investment intentions slipped slightly but remain at solid levels,
  • while expected profitability dipped more meaningfully, with a net 13% of firms expecting lower profits
  • cost pressures remain extreme, with a net 82.7% of firms reporting higher costs (versus 85% last month).
  • Capacity utilisation, which normally correlates pretty well with GDP, was remarkably robust, easing only slightly from 19 to 16%. 
  • Compared to the same month a year ago, lockdown has of course seen reported activity plummet. But while the 36 point fall is large, it's remarkable that only a net 4% of businesses reported lower activity versus a year ago. 

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