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- Business confidence retreats 10 points from a 30-year high but still seen as strong
- Businesses own expectations drop 9 points, but still historically high at 52 percent
- Wage pressures start to lift modestly with inflation expectations the highest in 15 months.
- More firms expect to raise prices over the next in two years
January’s business confidence is down 10 points from December’s 30-year high but is still considered to be extremely strong.
ANZ Bank’s business outlook’s headline confidence indicates a net 64 percent expected better economic conditions.
While businesses’ own expectations fell by 9 points to 52 percent, that reading was also historically high.
“The economy has clearly turned higher,” ANZ chief economist Sharon Zollner said.
“Reported past employment is also rising and is back in the black for all sectors. That hasn’t been the case since late 2022,” she said.
She said reported past activity, which was the best indicator of GDP, rose 3 points to 26 — the second highest reading since August 2021.
“The less-good news is re-emerging signs of inflation pressure.”
Inflation indicators rose to the highest reading in nearly three years (March 2023) with prices expected to rise by 2.1 percent, with wage pressures also expected to increase.
