Business confidence picking up despite Covid restrictions, says ANZ

Wednesday, 9 September 2020

Business confidence is at its highest since before the Covid outbreak according to some measures, ANZ says.

Business confidence has picked up surprising well in September despite the lingering restrictions from the Covid-19 outbreak in Auckland, survey results from ANZ suggest.

The bank reported that preliminary data from its latest business confidence survey found businesses’ confidence in the economy lifted 16 points from August to a net negative 26 per cent, while their confidence in their own outlooks rose eight points to a net negative 10 per cent.

ANZ chief economist Sharon Zollner said it was “remarkable” that only a net negative 1 per cent expected to reduce their investment in the year ahead, even though a net 14 per cent still expected to cut jobs.

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Many indicators – though still down on pre-Covid times – were at their highest levels since February, she said.

That suggested businesses were “looking through” the current Covid outbreak, she said.

“The New Zealand economy has a long way to go to navigate this crisis. Come year end, far fewer firms will be supported by wage subsidies, and the loss of tourists will be more sorely felt.

“But for now, things appear to be firmly in the ‘could be worse’ basket.”