28 Jul 2010

Business confidence continues to wane

7:26 pm on 28 July 2010

Business confidence in New Zealand is continuing to cool on signs the pace of the economic recovery is slowing.

The National Bank's latest monthly survey found optimists outnumber pessimists, with a net 28% of firms expecting their prospects to improve in the coming year.

That is a sharp drop from the previous survey's net 40% expecting better times ahead.

Firms' expectations about profits, employment and investment all declined.

National Bank's senior economist Khoon Goh says companies have been spooked by Europe's debt problems, a weak domestic economy and rising interest rates.