The latest NZIER Quarterly Survey of Business Opinion showed that headline business confidence remained steady in QII, once seasonal variations were removed. Confidence in the general economy held steady at 31 – a reasonably strong level by historical standards. Firms’ expectations of their own activity levels – usually the better barometer of economic activity – improved very slightly from 26 to 29. Less promisingly, experienced activity over the previous three months dropped from 10 to 4. That suggests that GDP growth over Q2 may be similarly subdued to Q1 (which came in at +0.3%). Modest Q2 growth would be consistent with our current forecasts.
Read the full report: Economic Research
Commonwealth Bank