28 Feb 2018

Business outlook bounces back

5:59 pm on 28 February 2018

Businesses are a little less gloomy after suffering some post-election blues.

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Photo: RNZ / Russell Palmer

ANZ's business outlook survey shows a net 19 percent are pessimistic about the year ahead, compared with a 38 percent reading in December.

Companies turned cautious after the Labour government came to power because of uncertainty about the effects of policies, such as immigration and housing.

But ANZ's survey suggests the mood is improving, with businesses' outlook for their own company rising.

ANZ chief economist Sharon Zollner said the businesses were no longer heading down hill.

"Strong terms of trade and a positive outlook for wage growth are providing a push ... We may not have a lot of altitude just yet, but we're off the

end of the ski jump and no longer heading downhill," she said.

Sharon Zollner said some companies are expecting to lift investment and plan to employ more people, but on the other hand say it will be tougher to get credit.

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