5 Sep 2011

Survey shows rise in business confidence

12:47 pm on 5 September 2011

Another survey of business sentiment has shown a sharp rise in confidence, as companies concentrate on the improving domestic economy.

The BNZ Bank's survey shows a net 36% of respondents expect the economy to be in better shape in a year's time, compared with a net 22% in August.

That stands in contrast to last week's National Bank's monthly report, which tumbled due to concerns about slowing global growth shaking confidence.

BNZ chief economist, Tony Alexander says it appears that firms are becoming accustomed to international volatility.

He attributes the pickup in confidence to the local economy, for instance more positive feedback from retailers.

Mr Alexander says margins still appear tight, but concerns from exporters about the high New Zealand dollar are not as strong as in previous months.