New Zealand business confidence (November) -57.1% (prior -42.7%) | Forexlive
ANZ NZ Business Survey for November 2022
Business confidence -57.1%
- prior -42.7%
Activity outlook -13.7%
- prior -2.5%
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Ugly numbers from New Zealand.
ANZ comments, in brief:
- Activity indicators fell.
- Residential construction intentions tanked.
- Employment intentions were negative for the first time since Oct 2020.
- Inflation pressures remain intense, though pricing intentions eased.
Further on inflation pressure:
- Inflation pressures remain intense but are easing slowly.
- Pricing intentions fell 6 points to a net 59% of firms intending to raise their prices in the next three months – still very high, but it peaked at 80.5% in March. Similarly, the average price increase that firms anticipate (next 3m) has dropped from 5.7% in April to 3.7%. The history of this series is too short to know what this implies for CPI inflation.
The Reserve Bank of New Zealand was one of the first DM central banks to begin raising rates, recognising early that inflation was rising. Despite their aggressive rate hikes, most recently a +75bp hike just last week, as you can see above price pressure is still extreme.
The RBNZ next meet on February 22.