Businesses report more confidence about New Zealand's broader economic picture, an ANZ survey released on Thursday shows. Photo: Yiting Lin / RNZ
- Business confidence perks up a bit in February
- ANZ survey shows confidence about the economy up four points, to 58 percent
- The more closely followed confidence measure for businesses 'own activity' nudges slightly lower, to 45 pct
- Inflation pointers steady, falling interest rates to lift activity
Economic recovery has replaced recession in the mind of local businesses, ANZ says, with many hoping lower interest rates will deliver stronger spending and activity.
The Bank's February edition of its monthly survey showed headline sentiment about the broad economic outlook picked up four points to 58 percent, while the more closely followed measure of firms' views about their own outlook edged down slightly - from 45.8 percent in January, to 45.1 in February.
ANZ chief economist Sharon Zollner said the business mood had changed for the better and was broad based.
"The economy remains on the path to recovery as interest rates fall and our commodity export prices outperform expectations."
"It seems clear from a wide range of indicators that the economy returned to positive growth in the last three months of last year," she said.
The survey's various indicators showed firms expect better exports, plan to invest more and to hire staff, while profits remained steady.
And inflation pointers remained steady and comfortably anchored within the Reserve Bank's target band.
However, Zollner said there risks remained, which would affect the outlook:
"It will depend on whether households view today's interest rates as high or low, whether global uncertainty will constrain investment and employment, or whether firms take a 'get on with it' attitude, and whether - and when - skill shortages will be a meaningful constraint on expansion."
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