citymedia.co.nz

New Zealand business confidence has slipped in December, though profit expectations rose in a mixed bag of results from National Bank's Business Outlook survey. It suggests the nation in is comparatively nice shape as it faces "the global storm ahead". A net 26 percent of firms see a pickup in their own activity in the coming year, down three points from November.

A net 17 percent of businesses expect better times for the economy in the coming year, down one point on November's survey, which had snapped months of declines.

The Business Outlook survey comes after diverse results from surveys on manufacturing, the services sector & consumer confidence, with the latter plunging, while services were stronger & manufacturing in contraction. Inflation expectations continued to fall in the latest survey, with inflation seen at two.99 percent in 12 months time, down from three.1 percent in the earlier month's survey. Expectations of profit increases climbed to a net 8.3 from four.3 in the earlier month.

The largest deterioration was shown in commercial construction, which tumbled to -3.2 from 26.7, while residential construction improved to 25.9 from 19.3.

"Although New Zealand has plenty of factors in its favors going in to the global storm ahead, they won't be immune," Mr Bagrie said. National Bank chief economist Cameron Bagrie described the results as "a hodge-podge of pluses & minuses" with absolute levels "solid" relative to historic averages but a broader picture that "things are slipping a little".