(Bloomberg) -- Optimism among New Zealand firms about their own trading prospects rose to a fresh 10-year high in December, according to an ANZ Bank survey, adding to signs of a recovery in economic growth in 2025.
A net 50.3% of respondents expect their own activity will improve in the next 12 months, up from 48% in November, ANZ said Thursday in Wellington. That’s the highest reading since May 2014. A gauge of how businesses view the overall economy edged lower for a second month.
The Reserve Bank has cut its Official Cash Rate by 125 basis points since August and has said it expects to move another 50 points in February. Falling interest rates are tipped to revive economic growth after a sharp slowdown in mid-2024. Data earlier Thursday revealed the economy shrank more than 2% in the six months through September.
“The survey showed more signs of demand recovering, with the first decent lift we’ve seen in past activity,” said Sharon Zollner, chief New Zealand economist at ANZ in Auckland. “It’s certainly not strong in level terms, but it’s clear that the economy has turned a corner. Thank goodness, one would have to say, after this morning’s very weak GDP out-turn.”
ANZ said the past-activity index that tracks firms’ estimated activity from the year-earlier month is the best growth indicator. The measure improved to net 0% from minus 9.7% in November and as low as minus 24% in July. The net is the percentage of firms reporting improvement less those reporting deterioration.
Elsewhere in today’s report, pricing indicators and inflation expectations were little changed but the proportion of firms expecting higher costs increased.
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