Generate’s Greg Smith on why it’s only a ‘peep’ round the corner.

Business confidence has jumped to a net 40% in the latest NZIER quarterly survey of business opinion, up from a net 14% in the June quarter, but Generate KiwiSaver investment and managed funds specialist Greg Smith isn’t saying we’ve turned a corner yet. Speaking on Herald NOW Business’s Wealth Watch segment, Smith said it’s “quite a sharp turnaround”, but businesses were “not exactly roaring ahead just yet”. He said the lift in sentiment contrasts with what they are experiencing now, with activity falling 1% and employment dropping. A lack of sales remains the top concern, Smith said, and some firms were also struggling to find skilled workers. Oil prices are another “big swing factor”, but there are “maybe some green tinges” for businesses with uncertainty around the election expected to ease.

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