Economic confidence good, says BNZ

A new survey has found a continuing level of sentiment for the New Zealand economy's prospects in the coming year, although conditions remain tough.

A net 18 per cent of respondents expect the economy to improve during the next year, the latest BNZ confidence survey, published today, found.

That was down from a record net 27 per cent positive in early May, which was thought to largely reflect relief that a Depression scenario was off the table, rather than expectations of strong growth ahead.

BNZ chief economist Tony Alexander said information from respondents for the latest survey indicated some signs of life in the recruitment sector, continuing shortages of residential real estate listings, and new understandable worries in the dairy sector.

Comments across most sectors indicated current conditions remained tough, with some new worries among exporters about the strength of the New Zealand dollar and falling dairy prices. he said.

Listings shortages continued in residential real estate with firm buyer interest, while in the recruitment sector there had been an interesting lift in employer interest.

- NZPA