AUS
NZ
UK
CA
USA
IND
Summary
- Preliminary findings of the ANZ Business Outlook survey have revealed that strains on the economy are beginning to show.
- Business confidence surged with a jump of 9 points to +7% in May.
- Investment, exports and profit expectations all increased in the range of 4 and 10 points.
Preliminary readings of ANZ Business Outlook survey reflect strains in the economy, which are becoming more visible.
ANZ’s Business Outlook survey illustrates the findings of a survey conducted every month, which includes 100s of businesses across NZ. It also forecasts the economy's direction for the next 12 months. The survey is designed for business people who want to know how business trust, export sales, labour market, etc., are shaping up.
Source: © Adonis1969|Megapixl.com
The ANZ Business Outlook's preliminary May readings revealed a 9-point increase in business confidence to +7% and a 10-point increase in firms' own activity expectations to +32.3%.
DO READ: NZ Financial system in healthy state, but vulnerabilities persist: RBNZ
Many of the sub-components saw significant lifts as well. Investment and employment intentions, export, profit expectations and capacity utilisation all witnessed a rise in the range of 4 and 10 points.
Survey Findings
Below are some of the survey findings on various business variables:
- Expected costs increased by 4 percentage points to a net 80% of businesses anticipating higher costs in the future.
- 58% of firms expect to increase their prices, a 2-point increase to the new peak in data that goes back to 1992.
- Inflation projections increased by 0.2 percentage points to 2.2%, a bit above the RBNZ CPI target midpoint of 2%.
- Profit expectations grew 10 points, with 9.6% of firms anticipating higher profitability in the future even after high costs.
- Export intentions increased 5 points to 14.9 % in the period.
Sharon Zollner Chief Economist at ANZ NZ stated that economic pressures are beginning to show as the economy tries to expand more than it can physically, given scarcity of both goods and labour.
ALSO READ: New Zealand Remains Upbeat As Unemployment Rate Decreases
He added that the amount of recorded disruption caused by inbound freight problems increased in construction and services, while for outbound freight, disruption increased throughout the economy.
ALSO READ: MYOB Business Monitor: NZ SMEs still wary about economic recovery in 2021
The recent opening of trans-Tasman bubble and a drop in unemployment rate to 4.7% have shown some positive signs that happened in NZ economy. Shipping disruption, rising global commodity prices, a higher minimum wage, and skill shortages remain as major problems being faced by the NZ economy.
