As yet another sign of the economy’s recovery, New Zealand business confidence reached a 10-year high in February.
A net 41.9% of companies expect sales and profits to increase over the course of the next 12 months. The number is up from 36.9% in December, according to data from ANZ National Bank Ltd. A net 50.1% expect the broader economy will improve, up from 38.5% in the December survey – the highest since April 1999.
“We are once again left with an impression that is well with economic prospects,” commented Cameron Bagrie, chief economist at ANZ National in Wellington. “We take considerable heart from the robustness of confidence in what has generally been a barrage of poor news over the past month.”
The report also showed that more companies are planning to increase their hiring expenditure.
New Zealand’s could expand 4% over the next year. Reserve Bank Governor Alan Bollard said last month he may need to raise the benchmark interest rate from a record-low 2.5% around the middle of 2010.
