New Zealand ANZ Business Confidence rebounded from -66.6 to -45.6 in May’s preliminary reading. Own activity outlook rose from -55.1 to -42.0. Looking at some details, a net 45% of firms expect to cut jobs and a net 38% expect to reduce investment. A net 30% of firms expect lower capacity utilization.
ANZ said: “As New Zealand emerges from a highly successful lockdown there’s a glimmer of light, but it’s at the end of a very long tunnel. Reducing virus cases to negligible levels sharply reduces a huge downside risk for businesses, but it’s clear that very tough times nonetheless lie ahead. The economic damage wrought by the lockdown is only starting to emerge; Level 2 still isn’t ‘normal’ for many businesses; and the global situation remains dire.”
