NZ: General business sentiment fell in September – Westpac

New Zealand’s general business sentiment fell in September, but this may have reflected uncertainty around the election as firms remained confident about their own circumstances, explains Michael Gordon, Senior Economist at Westpac.

Key Quotes

“The NZIER Quarterly Survey of Business Opinion showed a drop in general sentiment about economic conditions, possibly reflecting the uncertainty ahead of the 23 September general election. However, firms remain reasonably upbeat about their own circumstances, and they expect activity to pick up over the next quarter.”

“Employment growth remains strong, and workers are becoming increasingly difficult to find.”

“However, to date this has led to only a modest rise in the number of firms reporting cost and price increases.”

“We consider the survey to be in line with our near-term growth and inflation forecasts.”