New Zealand business survey due soon – the preliminary showed a small decline

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The final result for the New Zealand ANZ business survey for November is due at 0000 GMT. 

Business Confidence and Activity Outlook are the twin headlines, of the two the Activity outlook tends to be the best indicator of how business see their prospects. 

From the flash readings for the November: 
Activity outlook 15.6%

  • prior 21.1%

Business confidence -18.1%

  • prior -13.4%

ANZ remarks on the prelim:

Nearly all forward-looking activity indicators ease

  • Investment intentions fell 2 points
  • employment intentions rose 5 points

Expected profitability fell 3 points with a net 9% of firms expecting lower profits ahead

  • That is likely related to extreme cost pressures, with a net 89% of firms reporting higher costs, up 2, while only a net 65% are intending to raise their prices (which, while a lot smaller than the proportion of firms experiencing higher costs, is historically exceptionally high). 

And:

  • The one certainty is that costs are through the roof.

Cost pressures will keep the RBNZ on track for more rate hikes ahead. 

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