New Zealand ANZ business confidence index dropped to -45 in July, down -5 pts. That’s the lowest level since May 2008. Own activity index dropped -5 pts to 4, lowest since May 2009. Sub-indicators were weak across the board, and retail is the least
confident sector.
ANZ noted in the release that “this economy feels increasingly late in the cycle”. While fiscal stimulus and strong terms of trade will support growth, “sustained low business confidence increases the risk that firms will delay investment and hiring decisions”. “The Road ahead is looking less assured, and risks of a stall have increased.
Also from down under, New Zealand building permits dropped -7.6% mom in June. Australia building approvals rose 6.4% mom in June.
