News

New Zealand QSBO for Q2 2021, business confidence headline 7% (vs. -13% prior)

The NZIER Quarterly Survey of Business Opinion (QSBO) is a closely watched NZ economic indicator

From the New Zealand Institute of Economic Research

Capacity utilisation is higher, coming in at 94.9% vs. 93.8% in Q1.

  • Net 10% of businesses expect an improvement in the economic outlook on a seasonally adjusted basis
  • from the previous quarter when net 8% of businesses had expected a deterioration
  • Firms’ own trading activity net 26% of businesses reporting increased demand in the June quarter
  • Strong construction demand is boosting confidence in the building sector
  • strong pipeline of residential, commercial and government construction work over the coming year
  • capacity pressures are becoming more acute in the construction sector … COVID-related supply chain disruptions and labour shortages …  building construction firms’ difficulty finding skilled labour at the highest for the survey’s history (going back to 1976)
  • profitability in the building sector is the strongest since December 2002
  • Service sector firms feeling more positive
  • manufacturers and retailers feeling downbeat
  • demand has been improving
  • costs have also been rising strongly partly because of the difficulty in sourcing inventory
  • net 15 percent of firms increased headcount in the June quarter, while a net 20 percent of firms are looking to increase investment in plant and machinery over the coming year. 
  • labour shortages and supply chain disruptions are leading to a further build-up of capacity pressures across the New Zealand economy. The increase in both costs and prices points to rising inflation pressures

Articles You May Like

Dollar Hammered after CPI Miss, Yen Strongest But Others May Catch Up
US: Retail Sales stay unchanged in July vs +0.1% expected
Consumer prices rose 8.5% in July, less than expected as inflation pressures ease a bit
Major stock indices close higher on the day. Dow closes above 200 day MA
The USD is the strongest and the JPY is the weakest as the NA session begins

Leave a Reply

Your email address will not be published.