ANZ Survey Shows New Zealand Business Confidence Edges Up
New Zealand businesses report rising confidence and record services export intentions following a surprise decision by the Reserve Bank to hold interest rates.
The October ANZ Business Outlook survey shows Australia and New Zealand Banking Group Limited reported business confidence edging up to +53. While the expected own activity outlook dipped slightly to +46, the manufacturing sector led growth at +59. Services sector export intentions reached a 25-year high, fueled by strong tourism bookings and a weak New Zealand dollar.
These findings follow a surprise move by the Reserve Bank of New Zealand to hold the Official Cash Rate at 2.75% on Wednesday, defying market expectations of a hike to 3%. Despite the hold, pricing intentions rose to a net 52%, the highest level since May, while inflation expectations remained steady at 3.3%.
Economists suggest the data provides conflicting signals for the central bank's next review on December 9. ANZ forecasts three consecutive rate hikes starting in December, while other analysts note that the resilience of activity may clash with a muted degree of cost pass-through.
