31 May 2016

Business confidence continues to recover

3:28 pm on 31 May 2016

Business confidence is strengthening off the back of strong economic indicators.

Construction in Auckland City

"Construction remains the most upbeat sector and agriculture the least," said Cameron Bagrie. Photo: RNZ / Claire Eastham-Farrelly

ANZ Bank's Business Outlook survey shows confidence rising for a third month in a row in May, with a net 11 percent of firms optimistic about the year ahead.

That compares with 6 percent in April.

ANZ chief economist Cameron Bagrie said there was broad-based growth.

"Gains were evident across all the sub-sectors. Construction remains the most upbeat sector and agriculture the least," he said.

"The economic trail remains well groomed. Migration is strong. House prices are booming. The construction and tourism sectors are slaloming incredibly well," he added.

Mr Bagrie said some regions were performing well too.

"Nelson, Marlborough, Hawke's Bay and Bay of Plenty are traversing well across a range of survey measures, including activity expectations and employment."

Mr Bagrie said financial conditions were still supportive despite the high New Zealand dollar.

"Our composite growth indicator - which combines business and consumer sentiment - is flagging growth in a 2.5 - 3.5 percent range over the year ahead."

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