BNZ Confidence Survey Results

The BNZ Confidence Survey for May has found an 18 month high in the level of optimism businesses have about where the economy will be a year from now. A net 42% expect improvement from 14% in April and a net 21% expecting a deterioration immediately post-earthquake in March.

There is continuing positive sentiment about current economic conditions in agriculture, manufacturing for export and forestry, and improved sentiment in construction, accountancy, and both residential and non-residential property. However retailing remains weak.

The results suggest caution is still required with regard to the economy’s progress in the next few months. But 2012 is shaping up to be a strong year and the labour market data from last week and comments in the survey regarding staff shortages suggest some businesses are preparing themselves for that strong environment