Construction, freight, retail and hospitality/tourism businesses are all big improvers in Forsyth Barr’s Pulse of New Zealand Business survey.
There had been a material step up in demand over the past three months and profitability expectations for the next 12 months, compared to the investment firm’s previous survey.
About 50% of respondents were budgeting for higher profits over the year ahead, compared with 30% in the last two surveys and about 30% reported stronger demand over the past three months — compared with low teens in the previous two.
That was consistent with businesses moving beyond stabilisation and into recovery.
By contrast, perceptions of whether the economy was heading in the right direction had only improved modestly.
The broadening of the recovery was being led by the regions, which continued to outperform Auckland, Wellington and Christchurch by a widening margin.
Medium-sized enterprises also led the charge, remaining the most positive cohort on both recent trading and the outlook.
Deteriorating demand had fallen away as the dominant concern, consistent with activity in the economy improving and confidence across many sectors.
In its place, increasing competition and the need to adapt to new technology were becoming more prominent.
Perceptions of government remained broadly positive but had not materially changed. — Allied Media
