New Zealand business confidence slipped in February while remaining relatively optimistic, as the country's pace of economic growth starts hitting a "mature stage" where it becomes harder to keep hitting new highs.
A net 16.6 per cent of firms are optimistic about the general outlook for the economy, down from 21.7 per cent in December, according to the ANZ Business Outlook. A net 37.2 per cent see their own activity expanding in the year ahead, down from 39.6 per cent, and still north of the 28 per cent long-run average.
Record levels of tourism and population growth have helped fuel consumer spending over the past year and coincided with a major construction boom, helping drive New Zealand's economic growth and offsetting a period of tepid inflation that's kept price increases off the table, leaning on firms' profitability.
ANZ Bank New Zealand economist Cameron Bagrie said the survey of 416 firms showed economic indicators were still "well above average" and indicated more of a levelling out in the pace of growth rather than signalling a downturn.
"The economy is moving further into a mature stage of the economic expansion," Bagrie said. "When things already look pretty darn good (which they have been of late for most New Zealand businesses), it's harder to eke out incremental gains."
