31 Jul 2015

Business confidence falls to 6-year low

2:16 pm on 31 July 2015

Business confidence has slipped further into the red in July, an ANZ survey has found.

Businessman

Businessman Photo: 123rf

The survey found a net 15 percent of respondents expected the economy to get worse over the coming year - a six year low.

That compared with a net 2 percent expecting a deterioration in the previous month.

A net 19 percent of firms remained upbeat about their own prospects, though that slipped from 24 percent expecting better times.

Investment and hiring intentions fell, while profit expectations held steady. Inflation expectations remained close to historic lows.

ANZ Bank chief economist Cameron Bagrie said the economy's momentum was flagging, and he urged the Government to consider fast tracking some planned infrastructure projects to help prop up activity.

Three weeks ago, an Institute of Economic Research (NZIER) survey put business confidence at its lowest level since September 2012. That survey, for the June quarter, found just one in 10 firms expected an improvement in trading during the next three months.