NZ: Business confidence to remain firm in August - Westpac

After New Zealand’s business confidence fell back a bit in July, analysts at Westpac expect that it will remain firm in August.

Key Quotes

“Economic growth is expected to continue to at a healthy pace for some time, held up by strong population growth. However, the economy is facing some challenges, including growing capacity constraints in some sectors.”

“In addition, the upcoming election is adding to uncertainty around the economic outlook. Historically, elections tend to cause a few gyrations in business confidence, and recent developments in the political sphere may exacerbate the usual uncertainties.”

“We will also be keeping an eye on the survey’s measures of inflation expectations and pricing pressures. We are yet to see any material pickup on this front.”