Business confidence rose in October from August, but there is a disconnect between the positivity and firms' views about their own operations and sectors, BNZ's latest business confidence survey shows.
A net 18% of the 607 respondents to the survey conducted last Friday said they expected the economy to improve over the coming year, compared to net 1% expecting a deterioration two months ago, BNZ chief economist Tony Alexander said. There was no survey in September.
"The rise is the first since April and suggests that when the next monthly NBNZ Business Outlook survey appears in three weeks we will see a rise in sentiment also, probably accompanied by improved readings for employment and investment intentions," Alexander said.
"However, there still appears to be somewhat of a disconnect between the positive outlook for the economy and the caution businesses express about their own businesses and sectors. Few sectors are showing outright strength but those that do fall mainly on the positive side include horticulture, dairy, manufacturing and property management (residential rentals)," he said.
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