NZIER's QSBO shows sharp fall in........>

NEW ZEALAND: NZIER's QSBO shows sharp fall in activity with businesses still

downbeat - Quarterly Survey of Business Opinion, July 2020

- The results show New Zealand economic activity dropped sharply in the June

quarter. The net 37 percent of businesses reporting a decline in own trading

activity brings this measure to the lowest level since March 2009. This is not

surprising, given the tight trading restrictions under Alert Level 4. However, a

net 25 percent of businesses also expect weaker demand in the next quarter. And

although there was a slight improvement in headline business confidence,

businesses remain pessimistic about general economic conditions over the coming

months. Business confidence tends to soften heading into a general election,

with businesses holding off on major spending decisions given uncertainty over

the outcome. This quarter, the pre-election uncertainty is compounded by

uncertainty over how the COVID-19 outbreak will play out.

- Firms have become even more cautious and have pared back on headcount and

business investment.

- Link: https://tinyurl.com/y7fdxzwb