11 Apr 2012

Business confidence up

6:47 pm on 11 April 2012

Business confidence has edged up, with firms feeling brighter about the economy's prospects

The latest survey by the New Zealand Institute of Economic Research shows, on a seasonally-adjusted basis, a net 24% of firms expect business conditions to improve in the next six months.

That is a turnaround from the previous quarter, when a net 3% expected a deterioration.

But NZIER says the recovery is patchy across sectors and regions.

Principal economist Shamubeel Eaqub says Canterbury continues to rebound from the earthquakes, but activity is lacklustre elsewhere.

He says most indicators are going sideways, suggesting a gradual and patchy economic recovery.

For example, there has not been much of a recovery in the retail sector and in the manufacturing sector, exports were holding up, but domestic sales have been falling away quite rapidly.