[Wellington 29th Reuters]-The New Zealand (NZ) Corporate Confidence Index in August announced by the Bank of Australia and New Zealand (ANZ) worsened as the economy faced headwinds both at home and abroad.
The percentage of respondents who expected the NZ economy to deteriorate over the next year was 52.3%, up from 44.3% in July.
The view of the company's business activities over the next year has dropped from 5% last month to minus 0.5%.
Following the statistical announcement, the NZ dollar <NZD => fell 0.4% to 1NZ dollar = 0.6313 USD.
ANZ chief economist Sharon Zerner said, “In August, most activity indices deteriorated again and fell to a lower level. Employment, investment, export and profit prospects all fell to disastrous levels.” It was.
The answer to reduce employment was 9%, up from 6% in July. Employment prospects have been the worst since mid-2009. Indicators for profit prospects also dropped to a low level for the first time in 10 years.
The NZ central bank has decided to cut interest rates by 50 basis points (bp) above this month.
ANZ reported that the outlook for the economy seems to be getting worse, and that companies are extremely pessimistic in spite of the ease of the financial situation. “Whatever the cause, there is an increased risk of becoming self-fulfilling.”
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