NZ: Business sentiment improved a touch in Q1 - Westpac

Anne Boniface, Research Analyst at Westpac, explains that NZ’s business sentiment improved a touch in Q1, but remains below pre-election levels while the employment indicators were generally softer.

Key Quotes

“The NZIER Quarterly Survey of Business Opinion showed general business confidence firmed a little in the March quarter. However, confidence remains in pessimistic territory at -9 (previously -11).”

“Business confidence has improved in the March quarter, but only a touch.  A look at the bigger picture suggests business confidence has been easing in line with slower growth in the economy since mid-2016.”

“There was little sign of nascent inflation pressures in today’s data. Although indicators of capacity pressure have generally trended higher over the last couple of years, most eased in the last three months.”

“Our macroeconomic forecasts incorporate a lull in both hiring and investment over the course of 2018. The details of today’s release tend to support our softer employment growth outlook, but suggest the hiatus in business investment could be short lived.”