16 Apr 2012

Business confidence rises

12:38 pm on 16 April 2012

Business confidence has edged up again, but the improvement may be shortlived as worries about Europe's debt crisis linger.

The BNZ's latest confidence survey, which questioned more than 400 respondents, shows a net 34% expect the economy to improve in the next year.

That compares with a net 27% expecting an improvement last month and a net 2% who expected a deterioration in November.

BNZ chief economist Tony Alexander says the improvement suggests good growth in the New Zealand economy in the near future.

Mr Alexander says the real estate sector continues to show signs of improvement, manufacturing looks to be in reasonable shape, and agriculture is good even if there is some caution about next season's dairy payout.

But he says sentiment may ease slightly in coming months because worries about Europe's debt crisis have re-emerged.