Business Sentiment Deteriorates in New Zealand as a Result of Coronavirus

A recent survey by ANZ Bank reveals that business sentiment in New Zealand has declined during February on account of the raging coronavirus

Business Sentiment Deteriorates in New Zealand as a Result of Coronavirus

A recent survey by ANZ Bank reveals that business sentiment in New Zealand has declined during February on account of the raging coronavirus outbreak and its possible economic impact. The headline business confidence declined to -19 during February, down 6 points from the previous month.

While the survey responses were collected throughout the month, the sentiment among respondents worsened considerably towards the later half of the month over news of the rapid spread of the outbreak across China and the rest of the world. While the first group of responses that came in before February 17 showed a drop in business confidence to -14, the responses received after the date showed confidence dropping to -33.

Overall, businesses are concerned about the impact on their economic outlook on account of the toll the coronavirus is taking on China’s economy. New Zealand’s economy is closely linked with the Chinese economy on account of the trade relationship between the two countries.

Employment plans among NZ businesses have been impacted, with respondents indicating a six-point drop in hiring plans to +2 in February. Investment plans have also declined among businesses, with intentions falling two points lower to +7% for the month.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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