Business confidence declines in November

Business confidence ebbed lower in November after stalling in October, according to the National Bank business outlook report.

Overall, a net 43.4 per cent of respondents expect an improvement in business conditions in the year ahead compared with 48 per cent in the October survey.

A net 33.7 per cent expected better times ahead for their own business, compared to 31 per cent in the October survey.

"Despite the turn lower it is hard to describe the level of confidence as anything other than healthy - with confidence being maintained at levels last seen in 1999," said Cameron Bagrie, National Bank chief economist.

"2009 has hardly been an inspiring year, but momentum is building," he said.

An improving trend was apparent in the key sub-components across the survey.

A net 5 per cent of firms expect to be hiring staff over the coming year and a net 7 per cent of firms plan to increase investment, up marginally on the month prior.

Going against the grain was a slight fall in profit expectations, although a net 11 per cent still expect improved profits in the year ahead.

A net 73 per cent of respondents expect interest rates to move up but pricing intentions remain subdued, with a net 15 per cent expect to raise prices.

There were few signs of the strong currency having adverse consequences, with export intentions rising to a one-year high.

- NZPA