New Zealand business confidence extended its slide from a 20-year high, while remaining at elevated levels, amid expectations the central bank will continue to hike interest rates to quell inflation in an accelerating economy.
A net 64.8 percent of firms are optimistic about general business conditions this month, down from 67.3 percent in last month's survey and 70.8 percent in February, which was the highest since March 1994, according to the ANZ Business Outlook survey.
Confidence exceeded a net 50 percent in four of the five industry sectors surveyed, while agriculture slipped back to 42.9 percent from 52.8 percent, which may in part be driven by a drop in prices for global dairy products.
Retail was the most bullish for a second month, with a net 71.1 percent optimistic about general business conditions, up from 70.8 percent in last month's survey. Services edged up to 68.5 percent from 68.2 percent, construction improved to 65.4 percent from 63.2 percent and manufacturing rose to 61.3 percent from 55.8 percent.
"The economy remains 'in the groove' with elevated levels of confidence," said Cameron Bagrie, chief economist at ANZ. "With the economy firmly into an expansion and interest rates on the ascent, the challenge remains to settle into the glide-path of a durable and sustainable upswing."
