WELLINGTON, Oct 6 (Reuters) - New Zealand business confidence jumped to the highest level in a decade in the third quarter, a survey showed on Tuesday, adding to evidence of a gradual economic recovery.
A net 36 percent of firms expected general business conditions to improve in the next six months against the previous quarter's net 25 percent expecting conditions to worsen, the New Zealand Institute of Economic Research said in its quarterly survey of business opinion (QSBO).
The survey's headline measure of confidence hit a 35-year low in the first quarter.
The NZIER said firms' were more optimistic about their own short-term outlook with a seasonally adjusted 17 percent of firms expecting their own activity to improve in the next three months, compared with a net 20 percent expecting conditions to worsen in the previous quarter.
'We are interpreting the QSBO results as firms being cautiously optimistic,' said NZIER principal economist Shamubeel Eaqub in a statement.
New Zealand emerged from its longest recession on record in the second quarter, after posting meagre 0.1 percent growth.
Capacity utilisation -- the level of use of resources within the economy - fell to 88.42 percent from 90.7 percent in the previous quarter as the recession had generated excess spare capacity.
The seasonally adjusted headline measure of confidence was put at a net 27 percent expecting economic conditions to improve over the next six months compared with a net 14 percent pessimism level in the last quarter.
((Wellington newsroom tel 64 4 471 4234, fax +64 4 4736 212,
wellington.newsroom@reuters.com Keywords: NEWZEALAND ECONOMY/CONFIDENCE (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
A net 36 percent of firms expected general business conditions to improve in the next six months against the previous quarter's net 25 percent expecting conditions to worsen, the New Zealand Institute of Economic Research said in its quarterly survey of business opinion (QSBO).
The survey's headline measure of confidence hit a 35-year low in the first quarter.
The NZIER said firms' were more optimistic about their own short-term outlook with a seasonally adjusted 17 percent of firms expecting their own activity to improve in the next three months, compared with a net 20 percent expecting conditions to worsen in the previous quarter.
'We are interpreting the QSBO results as firms being cautiously optimistic,' said NZIER principal economist Shamubeel Eaqub in a statement.
New Zealand emerged from its longest recession on record in the second quarter, after posting meagre 0.1 percent growth.
Capacity utilisation -- the level of use of resources within the economy - fell to 88.42 percent from 90.7 percent in the previous quarter as the recession had generated excess spare capacity.
The seasonally adjusted headline measure of confidence was put at a net 27 percent expecting economic conditions to improve over the next six months compared with a net 14 percent pessimism level in the last quarter.
((Wellington newsroom tel 64 4 471 4234, fax +64 4 4736 212,
wellington.newsroom@reuters.com Keywords: NEWZEALAND ECONOMY/CONFIDENCE (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
