Confidence among New Zealand businesses improved sharply in May as a larger number of firms turned optimistic about their own business conditions as well as the wider economy, a survey by the National Bank of New Zealand (NBNZ) showed Tuesday.
The NBNZ's monthly business outlook report showed that a net 39.7 percent companies expect better times ahead for their own business, compared to 29.5 percent in April.
A net 38.3 percent of businesses expect better times for the economy over the coming year, up 24 points on April. General business confidence has now lifted 47 points in two months, more than reversing the post-quake decline in March, the bank said.
The indicator for profits expectations rose to 23 in May from 8, while the index for employment intentions rose to 13 from 6. Investment intentions lifted to 15 from 6 in the previous month. On the other hand, export intentions dipped, but only slightly.
At the same time, pricing intentions and inflation expectations have started to drift up, the bank said. One-year ahead inflation expectations climbed to 3.3 percent from 3 percent in the April survey. Firms' pricing intentions advanced 6 points with a net 34 percent of businesses being expected to raise prices over the year ahead.
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