The New Zealand Institute of Economic Research does a survey each quarter of business in NZ
The Q4 confidence measure is -12
- It was 5 in Q3
Seasonally adjust business confidence -11 to it s lowest since the third quarter of 2015
More:
- 10% of firms reported better trading activity in Q4, lowest since 2013 Q1
- Net 18% expect improved trading in Q1 2018
NZIER highlight a concern (bolding mine):
- A worrying development is the continued weakening in profitability, with a net 7 percent of businesses reporting a decline in profitability over the past quarter. Businesses expect further deterioration in the next quarter, in contrast to the trend over the past year where businesses had remained optimistic about a recovery despite weak profitability.
Weaker confidence and profitability is weighing on businesses' expansion plans, particularly when it comes to business investment. Only a net 2 percent of businesses plan to invest in new buildings, a sharp drop from 18 percent in the previous quarter. Hiring intentions are also lower, despite solid hiring in the past quarter. These developments point to a softening in growth over the coming year.
NZD/USD is down a few pips after the report but very little movement
