Economy

Clouds of gloom are hanging over employment prospects for 2012 with employment confidence levels falling to its lowest level since mid-2009.

Dunedin deserves, as do those who took today as a "public holiday", to suffer, cruelly, economic hardship if today's light dusting of snow is enough of an excuse to put Public Service offices, and even many medical and health care staff, off work for the day.

Central banks have almost run out of options on how to help stave off the latest volatility in world economies, BNZ senior economist Craig Ebert says.

The New Zealand dollar continued its acceleration to hit a new record against the US dollar yesterday as overseas investors' appetite for risk increased, including their exposure to higher-yielding currencies.

New Zealand's financial system is more resilient and positioned to support economic growth, but still faces a volatile and uncertain environment, Reserve Bank governor Alan Bollard says.

The Otago-Southland services industry appeared to have had a major bounce in activity last month, but caution is being advised against reading too much into the latest figures.

The prolonged weakness in the US and Europe may be the least of Asia's troubles in 2011, economists say, as the region fights potentially destabilising inflationary pressures.

Boxing Day shopping again attracted thousands of bargain hunters to Dunedin shops, with a busy day in the city despite the aftermath of the recession.

The Canterbury earthquake, Europe's big freeze and the ongoing global recession have combined to dent Christmas bookings at Queenstown Lakes District Council camping grounds, council holiday parks manager Greg Hartshorne says.

Finance Minister Bill English yesterday continued to talk up the prospects of an economic recovery despite evidence the recovery stalled in the middle part of this year.