NZ: Business confidence still pointing to a solid pace of growth - Westpac

Research Team at Westpac, notes that the business confidence dipped lower in July, but is still pointing to a solid pace of growth in the NZ economy.

Key Quotes

“Firms in the construction and services sectors have been the most upbeat, and those in the agricultural sector the most pessimistic, although strong gains in dairy prices in the month will have helped to shore up sentiment.

We will be paying close attention to the inflation gauges this month, given the RBNZ’s concern that lingering low inflation will translate into further falls in inflation expectations. This is the only reading on inflation expectations ahead of the RBNZ’s September OCR Review, and after some stability in recent months a downward turn would be a concern for the RBNZ.”