ANZ New Zealand Business Survey: Construction Intentions Up

--Business Confidence, Activity Outlook Ease Slightly

--Pricing Intentions, Inflation Expectations Ease

     SYDNEY (MNI) -  - From ANZ bank's New Zealand business outlook for August

published Thursday:

                          August   July

---------------------------------------

Business Confidence         18.3   19.4

Activity Outlook            38.2   40.3

Exports                     26.8   32.7

Investment Intentions       22.8   23.0

Employment Intentions       17.1   25.7

Interest rates              39.9   50.6

Pricing Intentions          20.5   27.6

Inflation Expectations     1.88%  1.98%

Ease of Credit             -23.3  -27.4

Residential Construction    36.4   10.5

Commercial Construction     28.6    5.6

     FACTORS: New Zealand business confidence and activity outlook eased further

in August but remained at elevated levels. The decline was mainly due to a fall

in employment intentions which recorded the lowest reading in over a year.

Export intentions also eased, investment intentions were little changed while

profit expectations rose. The highlight was a rebound in construction

intentions, with both residential and commercial intentions rising sharply.  

     Pricing intentions eased for the second straight month and inflation

expectations fell further. Also, the proportion of businesses expecting interest

rates to rise fell to the lowest level in nine months. 

     TAKEAWAY: The details in the survey suggest prospects for growth remain

strong in line with the comment from the Reserve Bank Governor Graeme Wheeler in

a speech Wednesday. But easing in the indicators related to interest rates

suggest the RBNZ's policy is likely to remain on hold for longer, with some risk

to the downside.

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

[TOPICS: MTABLE,MANDS$,M$A$$$,M$N$$$,MT$$$$]