NZ business confidence surges back in October - ANZ

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 30, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Bali) - Cameron Bagrie, Chief Economist at ANZ, notes that New Zealand business confidence surged back into positive territory in October, with Cameron now expecting reasonable growth over the year ahead.

    Key Quotes

    "The key survey indicators more closely correlated to GDP growth and more economically relevant for assessing economic prospects also improved."

    "It’s hard to go past rebounding dairy prices as the catalyst but we believe there’s a broader story. "

    "Our composite indicator flags reasonable growth over the year ahead.

    "Pricing intentions remain listless."

    "The economic aeroplane once again has wings; business confidence surged off lows. A net 10% of businesses are optimistic about the general economy, a huge turnaround from the net 19% pessimistic last month."

    "Improvement was apparent across the broad survey, and importantly, in the key survey indicators that more closely correlate to GDP growth."

    "The lift in confidence was not solely due to the onset of spring and warmer weather, with most components on the survey improving in seasonally adjusted terms also, including general business confidence and firms’ own activity, employment, investment and profit expectations."

    "Admittedly, the improvement was less stark than in the unadjusted figures, but there was still movement in a positive direction."
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