New Zealand data – Q3 business cnfidence -1% (prior was -44%)

New Zealand data much improved. Quarterly Survey of Business Opinion (QSBO) from the New Zealand Institute of Economic Research (NZIER). Link to more here. In summary:

Business confidence comes in at -1% in Q3

• prior -44%

Net 5% expect a deterioration in general economic conditions over the coming months

• prior was 40% expecting deterioration

Firms’ own trading activity, net 31% reporting a decline in activity in their own business in Q3, but only net 2% are expecting weaker activity in Q4.

On inflation pressure:

• slight increase in the proportion of firms reporting higher costs in Q3
• only a net 3% of firms were able to raise prices to pass on costs (from 23% in Q2)
• “The change in firms’ price-setting behaviour was highlighted by the RBNZ as a key factor providing them the comfort that inflation was easing enough to warrant them in commencing an easing cycle in the OCR.

On the employment front:

• easing in capacity pressures
• significant proportions of firms now reporting it easy to find skilled and unskilled labour
• Many firms also reduced their staff numbers in the September quarter
• results point to increased slack in the labour market

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The QSBO is a closely-watched survey:

• is one of the country’s longest-running business surveys. It provides a insights into the business climate and economic conditions in New Zealand, and the factors influencing business sentiment, such as domestic and international economic conditions, government policies, and other external events.

• surveys businesses across various sectors
• gathers data on business confidence, demand, hiring intentions, investment plans, and other economic indicators
• QSBO findings can vary significantly from one quarter to another

This article was written by Eamonn Sheridan at www.forexlive.com.