Lower business confidence a reality check: ANZ

Last updated 13:31 29/08/2014

Relevant offers

Industries

Parking app hopes to prevent crimes against women Fresh push to get more women into IT No visitor levy but other sweeteners possible - Steven Joyce Union pushes for tighter lift safety rules following death of Wellington man Brendon Scheib Building consents top $2 billion for the first time 'Perception' the problem as super changes bring ageism into sharper focus Chart of the day: Sharp drop in value of exports from Port Taranaki Wellington's Amora Hotel says it is closing for up to 12 months TVNZ outlines newsroom cuts to staff No fine but demolition company director pleads guilty over asbestos danger

Business confidence has fallen for the sixth month in a row and farmer confidence has been hit by slumping dairy prices.

The ANZ business outlook shows a net 24 per cent of firms are optimistic about the general outlook, down 16 points in a month.

The level is down 46 points from the peak in February.

ANZ said the economy was clearly past its peak growth rate, but the latest confidence levels were still respectable.

"But there is now a clear reality check," it said.

Firms' activity expectations dropped 8 points to +37 and were down in all sub-sectors.

"The overall level remains buoyant but is getting within spitting distance of average," ANZ said.

The economy had moved from recovery with strong growth rates off lows into "Goldilocks mode" of solid growth with low inflation, which was the optimal mix.

"It looks like we'll stop short of overheating, which is when the brakes in the form of tight monetary policy [high interest rates] really have to be applied," ANZ said.

"Just how long Goldilocks eats our porridge and sleeps in our bed remains the critical question. Time will tell."

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content