Business confidence in New Zealand improved in October, the latest survey from ANZ Bank showed Wednesday.
The business confidence index rose to 26.5 in October from 13.4 in September. This was more than the long-run average but was still less than the peak in February.
The activity outlook showed slight improvement, rising to 37.8 in October from 37 in the previous month.
“Based on the latest readings of business and consumer confidence the composite gauge is indicating the economy could post 4.7% growth by March next year. That rate is implausible given the capacity constraints. It’s possible for an economy to bounce off lows in the initial stages of recovery but not beyond, in the absence of sharp uplifts in potential growth, ” ANZ said.
“The New Zealand economy is an enviable position, experiencing strong growth and low inflation. The macro drivers of the business cycle we know about. But it’s the microeconomic facets that might be delivering the real economic muscle and allowing the economy to run faster without blowing a head gasket.”
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