WELLINGTON, July 28 (Reuters) – New Zealand’s business climate improved slightly in July but remained lackluster amid strong inflationary pressures, an ANZ Bank survey showed on Thursday.
The main measure of the survey showed that 56.7% of respondents expected the economy to deteriorate in the coming year. This compares to a level of pessimism of 62.6% in the previous poll in June.
ANZ said in a note that businesses were well aware that the Reserve Bank was tasked with reducing customer demand to curb inflation, so it was no surprise they were apprehensive.
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A total of 8.7% of respondents expected their own business to decline over the next 12 months, a slight improvement from 9. See the article : Netflix: The good, the bad, and the downright ugly as investors brace for Q2 earnings.1% previously.
ANZ said economy-wide inflationary pressures remain intense, with 91.3% of businesses expecting higher costs.
The rate of cost increases appears to have stabilized, but remains far too high, the bank added.
He also noted that supply-side factors continue to cause headaches, while a severe labor shortage is also hurting businesses.
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Reporting by Lucy Craymer; edited by Richard Pullin This may interest you : Downtown restaurant community says taste of Mountain View helps drive business.
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