New Zealand ANZ business confidence rose to 1.8 in May, up from April’s -2.0, but well below preliminary reading of 7.0. Own activity outlook rose to 27.1, up from April’s 22.2, but below preliminary reading of 32.3.
Looking at some more details, export intentions rose from 9.1 to 12.2. Investment intentions rose from 17.1 to 18.9. Cost expectations rose from 76.1 to 81.3. Employment intentions rose from 16.4 to 20.5. Pricing intentions rose from 55.8 to 57.4.
ANZ said: “The New Zealand economy is struggling to keep up with demand, and cost and inflation pressures continue to build. Firms are having trouble sourcing inputs to production. We wouldn’t read too much into the drop in activity indicators in the second half of the month just yet, as it may have been influenced by Budget uncertainty. We won’t have to wait long to get a fresh read, with the preliminary June data due to be released on 9 June.”
