The NZIER Quarterly Survey of Business Opinion (QSBO) is a closely watched NZ economic indicator
From the New Zealand Institute of Economic Research
Capacity utilisation is higher, coming in at 94.9% vs. 93.8% in Q1.
- Net 10% of businesses expect an improvement in the economic outlook on a seasonally adjusted basis
- from the previous quarter when net 8% of businesses had expected a deterioration
- Firms’ own trading activity net 26% of businesses reporting increased demand in the June quarter
- Strong construction demand is boosting confidence in the building sector
- strong pipeline of residential, commercial and government construction work over the coming year
- capacity pressures are becoming more acute in the construction sector … COVID-related supply chain disruptions and labour shortages … building construction firms’ difficulty finding skilled labour at the highest for the survey’s history (going back to 1976)
- profitability in the building sector is the strongest since December 2002
- Service sector firms feeling more positive
- manufacturers and retailers feeling downbeat
- demand has been improving
- costs have also been rising strongly partly because of the difficulty in sourcing inventory
- net 15 percent of firms increased headcount in the June quarter, while a net 20 percent of firms are looking to increase investment in plant and machinery over the coming year.
- labour shortages and supply chain disruptions are leading to a further build-up of capacity pressures across the New Zealand economy. The increase in both costs and prices points to rising inflation pressures