A sharp rise in business confidence seen in recent months has stalled in latest National Bank Business Outlook report.
Overall, a net 48 per cent of respondents expect an improvement in business conditions in the year ahead compared with 49 per cent in the September survey.
Companies' own activity expectations were also little changed. A net 31 per cent expected better times ahead for their own business, compared to 32 per cent in the September survey.
"It is hard to describe the readings as anything other than stabilising at elevated levels," said Cameron Bagrie, chief economist of National Bank.
There was evidence of a bounce back in the construction sector in the survey. The sector had a plus 75 per cent reading for confidence, plus 58 per cent reading for own activity expectations, plus 20 per cent for employment intentions, plus 27 per cent for profit expectations and plus 12 per cent reading for investment intentions.
Overall, a net 12 per cent of companies expect a better bottom line profit in the coming 12 months - the best reading in five years.
Investment intentions have risen 4 points to plus 6 per cent.
Employment intentions dipped to a net position of zero.
Bagrie said that despite the turn in the survey results the overall levels remained robust and healthy.
The high NZ dollar was casting a dark shadow over prospects and the labour market remained weak.
"Yet momentum is building, and if the survey is correct, it is coming from an area of the economy where inflation can be quickly generated," said Bagrie.
- NZPA
