Business confidence rose in February to a decade high, according to the National Bank business outlook report.
Overall, a net 50.1 percent of respondents expect an improvement in business conditions in the year ahead compared with 38.5 percent in the January survey. It is the highest reading for business confidence since 1999.
Confidence was up across the manufacturing, agriculture, construction and service subgroups. Retailing bucked the trend with confidence falling 14 points, the survey, published today, found.
A net 41.9 percent expected better times ahead for their own business, compared to 36.9 percent in the January survey.
Profit and employment expectations started the year with a positive tone, with a net 23.2 percent expecting higher profits over the year ahead, and a net 9.3 percent expecting to be hiring.
Both compared well relative to long-run averages and augured well for a broadening of the economic recovery, the National Bank said.
Export intentions continued to lift, with a net 30.8 percent expecting better volumes in the year ahead.
But two aspects from the February survey went against the improving trend.
Retailing was the only sector to record a fall in confidence, in firms' own activity expectations, investment and employment.
The latter two in particular were telling, the bank said.
A net 7 percent of retailers expected to cut employment and a net 6 percent to be investing less -- a turnaround from positive readings at the end of 2009.
Investment intentions had eased generally, with a net 7.6 percent expecting to be investing more over the coming year down from 9.8 percent in January.
A 2 percentage point decline was well within the margin of error, but the failure to follow the reads from employment, profits and activity expectations suggested deeper forces were keeping firms in a holding pattern, the bank said.
NZPA