30 Nov 2015

Business confidence hits six-month high

4:22 pm on 30 November 2015

Business confidence has improved to its highest level in six months, according to the ANZ Bank's latest business sentiment survey.

A net 14.6 percent of respondents in November expected the economy to improve over the coming year, compared with the net 10.5 percent who showed optimism in October, the survey said.

Business confidence was now at its strongest level in the six months since May, after which it plunged to a six-year low because of falling dairy prices and international volatility.

Companies were also more upbeat about their own outlook, with a net 32 percent seeing an improvement in their activity over the coming year - up from 24 percent in October.

ANZ chief economist Cameron Bagrie said the survey showed firms expected to make bigger profits, invest more and hire further staff in the coming year, which would help to underpin growth.

"Reasonable readings for business sentiment and the sub-components of the survey in particular tell us the economy is doing okay," Mr Bagrie said.

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