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- Business confidence jumps as firms report better past activity
- The closely followed measure of expected own activity also rose to its highest in more than a decade
- One-year ahead inflation expectations steady
Business confidence has jumped to its highest level in 11 years.
The ANZ Business Outlook survey showed headline confidence rising nine points to net 67 percent confidence in November.
The more closely followed measure of businesses' expected own activity also rose to the highest level in more than a decade - increasing eight points to net 53 percent.
ANZ said reported past activity, the best indicator of economic growth in the survey, also looked brighter for every sector except construction, although it too was off its lows.
"Green shoots are looking well established, if this month's survey is anything to go by," ANZ chief economist Sharon Zollner said.
"It is particularly encouraging that the improvement in sentiment is rooted in an improvement in experienced activity, not just hope."
Zollner said "things are looking up".
Inflation expectations were steady, with one-year ahead inflation expectations at 2.69 percent.
"With the recovery underway and CPI inflation at the top of the target band, we don't expect the RBNZ [Reserve Bank of New Zealand] to cut the OCR again this cycle barring unexpected developments," Zollner said.
Other inflation indicators in the survey showed the net percentage of firms expecting to raise prices in the next three months rising to its highest level since March.
But those expecting cost increases eased marginally.
Regionally, ANZ said Wellington remained the weakest for both experienced and expected activity, although it also improved.
It said the lift in past activity was broad-based across the regions, but was strong in Auckland and the South Island outside of Canterbury.
