New Zealand January business confidence -52.0 (prior -70.2) Activity -15.8 (prior -25.6)

ANZ New Zealand Business Survey

-

ANZ remarks on the results:

Business people appear to have come back from holiday in slightly better spirits. Some of the shock value of the November rate hike and talk of a “deliberately engineered” recession appears to have worn off, though most indicators remain at very subdued levels.

The key themes of the January survey:

• Activity measures generally saw a partial bounce-back from their December falls, led by manufacturing, services and retail.
• Inflation and pricing pressures remain intense. Both cost expectations and pricing intentions moved higher (costs by more, suggesting worsening margin Margin Margin is a certain amount of collateral a trader places with a broker when he wants to trade with borrowed funds. This is done with a margin account, and it lets you to trade with leverage, increasing your buying power and multiplying your potential profit. Of course, trading on leverage increases both the potential profit and potential loss. Generally, the margin requirements are low, say 3% minimum depending on the instrument, and to open a position you’re required to set aside a certain amou Margin is a certain amount of collateral a trader places with a broker when he wants to trade with borrowed funds. This is done with a margin account, and it lets you to trade with leverage, increasing your buying power and multiplying your potential profit. Of course, trading on leverage increases both the potential profit and potential loss. Generally, the margin requirements are low, say 3% minimum depending on the instrument, and to open a position you’re required to set aside a certain amou Read this Term squeeze).

Inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term expectations remain stuck around 6% (figure 2).

NZD/USD is up a few tics after the data. Just a few tics though, not a lot in it.

Better confidence is projected ahead:

• BNZ expect a convincing boost to New Zealand business confidence in coming months