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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
NEW ZEALAND
ANZ business confidence for October rose to 23.4 from 1.5. This is its highest level since June 2017. The activity outlook improved to 23.1 from 10.9. The prospect and then the actual change in government during the month buoyed NZ businesses although activity and confidence have been trending higher all year. Price components though didn’t continue their gradual improvement and are too high to achieve the inflation target.
- ANZ divides the responses into early and late October and there was a strong rise in business confidence, export & investment intentions in late October following the October 14 election. There were increases in confidence and the outlook early in the month too but then polls had been signalling for some time that the labour government was unlikely to be re-elected. November will be key in determining if this optimism will be sustained.
- ANZ notes that respondents can overestimate the impact of a change in government.
NZ ANZ business outlook
Source: MNI - Market News/Refinitiv
- Inflation expectations over the coming 3-months remained elevated at 4.94% little changed from September. Pricing intentions eased less than a point to 46.3 with cost expectations still high at 76% and 82% in services. 81.3% expect to increase wages down slightly from 82.2% but in manufacturing it rose to 90.9%. According to ANZ, these figures remain too high for inflation to return to target “any time soon” but past wage settlements are moving in the right direction.
NZ ANZ business price/cost components
Source: MNI - Market News/Refinitiv
- Employment intentions rose to 5.6 in October from 1.2, the highest in just over a year. They were particularly strong in manufacturing.
- See ANZ’s report here.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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