Business confidence has fallen further in August, according to the latest ANZ Outlook survey. "In the August, ANZ Business Outlook Survey headline business confidence dropped a further 5 points to a net 50 percent of respondents reporting they expect general business conditions to deteriorate in the year ahead," ANZ chief economist Sharon Zollner said. If this weakness is sustained, it will not bode well for GDP growth heading into the end of the year." In a major speech on the issue this week Prime Minister Jacinda Ardern acknowledged the serious downturn in business confidence but argued that business expectations did not correlate with GDP performance. "If this weakness is sustained, it will not bode well for GDP growth heading into the end of the year."

Source: Otago Daily Times August 30, 2018 01:41 UTC