Steady recovery after earthquake - Quarterly Survey of Business Opinion, July 2011
05 July 2011
NZIER’s Quarterly Survey of Business Opinion (QSBO) shows steady economic activity in the June 2011 quarter. This follows significant localised disruption after the Canterbury earthquake. Firms’ experienced trading activity rebounded from -5% to +4% on a seasonally adjusted basis.
“Economic conditions reflect modest growth. Business confidence bounced back after the Canterbury earthquake, but there continue to be signs of economic weakness. Hiring and overtime worked fell in June. Business expectations and intentions for September have improved. But we are yet to see the catalyst that transforms this confidence into hiring and investment. Local demand has strengthened while exports have stabilised, but demand is still the biggest constraint on businesses and margins are tight. Continued deleveraging, slowing activity in Australia and a high exchange rate provide headwinds for economic growth,” said Jean-Pierre de Raad, Chief Executive at NZIER.
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