Business confidence (lack of) has been a driver in recent months, it has plunged.
This has weighed on the NZD.
The data is due tomorrow from NZ, ANZ Business confidence for November
- prior -37.1
- due at 0000GMT
Thoughts via ASB, a pretty good brief summary of the cocnern:
- Headline business confidence and firms' own activity expectations were both soft in October, with confidence having been persistently weak since the 2017 General Election.
- Irrespective of the underlying causes for weak sentiment, there is the risk that it becomes self-fulfilling by impacting on business decisions. The longer business confidence remains low, the greater the risk to the economic outlook, and more likely the OCR will be cut.
