The second BNZ Confidence Survey for 2013 has found that in spite of the spreading drought, export-suppressing high exchange rate, and worries about housing affordability, sentiment regarding where the economy is heading has improved to the highest level since July 2011.
A net 41% of businesses are confident about the year ahead compared with a net 32% in February.
In the construction and civil construction sectors activity is noticeably strong or picking up, and residential real estate remains buoyant with the long noted shortage of listings broadly continuing. The forestry sector is again reported to be in improving condition. But substantial caution prevails in the agricultural sector with worries about the drought.
One noticeably newly strong sector is recruitment. All six comments received were on the positive side so maybe this is an early indicator of things solidly cyclically improving.
The drought is spreading. Its impact won’t just hit farmers and those who service and supply them, it will have a big impact on the tax take and the wider economy.
That business confidence is high in spite of that is encouraging.
Full results of the survey are here.