WELLINGTON, Feb. 20 (Xinhua) -- Business confidence in New Zealand has jumped to its highest level since tracking began in 2022, marking a "material turnaround" in business sentiment, according to a survey.
The February survey by the Auckland Business Chamber found that only 25 percent of businesses now hold a negative view of the economy, down from 44 percent in November, while positive sentiment has doubled to 32 percent, a chamber statement said Friday.
"After a long stretch of businesses feeling battered, this is a real lift in mood," said Simon Bridges, CEO of the Auckland Business Chamber.
Over half of businesses expect the economy and revenues to improve over the next 12 months, although hiring intentions have eased, with 41 percent planning to hire, down 6 points, "suggesting businesses are optimistic but cautious," the statement said.
Inflation and interest rates have re-emerged as major concerns, rising from 29 percent in November to 44 percent in February. By contrast, concern about productivity and growth has eased from 43 percent to 36 percent, it said.
Consumer confidence and demand remain the top issue overall, cited by 55 percent of businesses, though slightly down from November, the survey showed.
"Until households feel confident spending, businesses will continue to feel that constraint," Bridges said, adding that confidence was "leading performance," often the first sign of recovery. ■