Business confidence dropped marginally in December, according to the ANZ-National Bank Business Outlook released yesterday.
A net 17% of businesses expected better times for the economy in the year ahead, down 1% on November. Seasonally adjusted, business confidence was unchanged in the month.
"That's not a bad result, given the dire economic headlines that continue to hit the front of the international section of our daily newspapers," ANZ-National Bank chief economist Cameron Bagrie said.
"New Zealanders seem to just be getting on with it, albeit with occasional nervous glances over their shoulders at the slow-motion train wreck that is Europe."
There were some positive points to take from the survey, he said. The absolute levels remained solid, relative to historical averages. The uplift in profit expectations was welcome for they augured well for investment and employment.
The ongoing falls in pricing intentions and inflation expectations would help lock in easy monetary policy for the foreseeable future.
However, it was fair to say that in the broader picture, things were slipping and that was understandable, Mr Bagrie said.
Although New Zealand had many factors in its favour, it would not be immune from developments in Europe.
"We are a small, heavily indebted, trading nation. The global scene will be coupled to European developments and there will be fallout for New Zealand via commodity prices, funding costs and a new urgency to fiscal austerity."
