NZ May, preliminary business confidence +7.0 (prior -2.0) and activity outlook +32.3 (prior +22.2)

New Zealand ANZ business survey for May, preliminary 

business confidence jumps to 7 from:
activity outlook higher again to 32.3 from:
As part of the survey ANZ ask for inflation expectations. These have risen to 2.17% from the previous month at 1.97% 

ANZ main points:

  • All the sub-components also showed solid lifts: export, investment and employment intentions, capacity utilisation, and profit expectations. 
  • Pricing expectations hit yet another record high, and cost expectations are off the charts. 

ANZ’s graph of pricing intention is indeed rocketing:

nz inflation

The Reserve Bank of New Zealand say they want to keep monetary policy supportive and that inflation is only transitory. If those pricing intentions translate to CPI increases can they hold the line? 


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