New Zealand ANZ Business Confidence improved to -13.2 in December, up from -26.4. It’s the best reading since October 2017. Nevertheless, confidence remained negative across all sectors, worst in agriculture (-35.1) and beat in retail (-6.5). Activity outlook also improved to 17.2, up from 12.9, best in manufacturing (23.7), worst in construction (9.5). Outlook reading was the best since April 2018.
ANZ said: “New Zealand businesses are rolling into the end of the year in much better heart than was looking likely just a few months ago, particularly manufacturers. Challenges remain, and time will tell how sustainable the lift in sentiment and activity proves to be, with headwinds for the economy still present and global risks not having gone away, for all that some geopolitical risks are now less prominent. But for now, surprisingly strong commodity prices and low interest rates are working their magic, and 2019 is ending on a much better note than it began.”
