ANZ's Nov New Zealand business confidence survey nears 15-year high
Published Nov 27, 2013 06:58PM ET
Updated Nov 27, 2013 07:19PM ET
Confidence in November rose to 60.5 points from 53.2 points in October with anticipated employment growth highest for the construction sector.
ANZ said the tone of the latest survey reinforces its composite growth indicator portends boom times ahead with 5% growth.
"That's pie-in-the-sky stuff but we agree with the spirit - good times ahead," ANZ said.
"This will bring both challenges (rising interest rates and a stubbornly high exchange rate) and opportunities. We’re seeing growth without significantly rising inflation at present - a so-called goldilocks economy," ANZ Chief economist Cameron Bagrie said. "How long she sleeps in our bed will increasingly come down to the underlying productivity story. The last thing New Zealand needs at present is for complacency to creep in."
Earlier on Thursday, the Reserve Bank of New Zealand showed loans above 80% of the value of property were just 12.8% of new commitments in October, down from 25.5% in September and 26.5% in August, signaling that efforts to curb surging house prices were working.
High loan-to-value ratio (LVR) rules that came into effect in October are aimed at cooling surging house prices that can ramp up inflation pressures in an economy still rebuilding from an earthquake that hit the city of Christchurch in 2011 and a shortage of affordable housing in cities like Auckland.
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Written By: Investing.com
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