The BNZ monthly survey of the confidence of BNZ Weekly Overview readers has found a slight improvement in sentiment to a net 42% confident about the economy in a year’s time compared with 35% three weeks ago.

Confidence levels have essentially stabilised at high levels, but as with so many other sentiment readings there is no indication of a traditional correlation between strong sentiment and strong spending.

In fact it is notable from reading the comments submitted that there has been some extra weakness in the residential real estate and investment market over the past few weeks, and most other sectors remain as patchy as ever. More>>

There are signs that companies want to hire people again but most appear unwilling to actually seek out staff. Investment plans remain largely on hold and there is caution regarding the strength seen recently in some parts of the construction sector. The survey leaves little justification for saying that the New Zealand is powering out of recession, but the tone does suggest improvement is slowly occurring. Many respondents await the reading of the Budget to take away some uncertainty. More>>

 

For individual industries responses can be broadly be summarised as follows.

Accountancy - Mild improvements here and there but cash flow still tight for many small businesses.
Advertising & Marketing - Some signs of growth appearing.
Agriculture - Slow improvement in sentiment underway it seems but little opening of wallets evident.
Architects - Mild improvement.
Construction - Mild improvement evident, but patchy and with tight margins plus an over-supply of trades people still.
Engineering - Mainly weak but hopes for improvement.
Forestry/Manufacturing/Sawmilling - Strong due to China.
Hospitality - Still weak.
Human Resources - More interest in hiring people is appearing.
Information Technology/Telecommunications - Spending appears to be picking up.
Manufacturing - Activity improving except for home furnishings including furniture and carpet.
Property Development - Weak. Lack of finance cited.
Real Estate – Non-residential - Overall quiet with some easing in rents.
Real Estate – Residential - Buyers in short supply with plenty of uncertainty regarding the Budget. Investors generally selling or not buying. Plentiful though not overwhelming listings.
Real Estate – Rural - Quite weak. Few buyers, few transactions.
Retail - Overall weak with customers more discerning.
Tourism and Travel - No clear trend.
Vehicles & Automotive - Off lows perhaps but improvements are very patchy and some have reversed.

 

See the individual comments and graphs. More>>

 

Previous Confidence Surveys

8th March 2010 - More>>
February 2010 - More>>
December 2009 - More>>

- BNZ