MNI 5 Things:New Zealand Survey Shows Retail Conditions Easing

By Sophia Rodrigues

     SYDNEY (MNI) -  - Below are the five observations we made from the ANZ

bank's New Zealand business outlook survey for February published Wednesday:

     --Business confidence worsened slightly in March and has been in the

negative zone for the fifth straight survey. Confidence is the worst in

agriculture and the highest in services, though it was in negative for both the

worst and the best.

     --Retail conditions fell to -17.9 in March from -3.7 in February, and is

the one to be watched closely. The deterioration may be a reflection of slowing

housing market activity.

     --Ease of credit fell deeper into negative, down to -28.4 from -24.2. All

the five sub-sectors had a near-similar view on credit conditions, ranging from

-31.6 to -27.1. This indicator will also be important to watch for insight on

tightening financial conditions.

     --Pricing intentions rose in March, with the biggest increase seen in

construction which rose to 38.5 from 27.0. Pricing intentions in retail eased

slightly to 21.4 from 21.8 which again is a reflection of challenges in the

sector. -Inflation expectations rose a tad but there was a fall in the net

percentage of those expecting interest rate hikes.

     --Capacity utilization rose in March, with capacity in construction sector

rebounding partly from a big drop the month before. Activity in the residential

construction sector was little changed but fell in commercial construction. 

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

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