25 Aug 2010

Firms expect economic growth

7:41 am on 25 August 2010

The latest survey from the Reserve Bank shows firms believe the economy will contine to expand over the coming year, but that their inflation expectations are mixed.

The central bank's survey shows business managers expect inflation to rise to 3.9% over the coming year, up from 2.9% in the previous quarter.

However, their inflation expectations over the next two years eased from 2.8% to 2.6%.

Respondents expect the economy to expand over the next two years at a rate of 2.8%, but pulled back their optimism of growth over the coming year from 2.7% to 2.3%.