31 Mar 2011

Business confidence slumps after quake

6:02 pm on 31 March 2011

Business confidence has slumped in the wake of February's devastating earthquake in Christchurch.

The National Bank monthly survey of sentiment found pessimists outnumber optimists, with a net 9% expecting worse times ahead.

That's a huge reversal from the 37% who in the previous month were expecting an improvement.

National Bank chief economist Cameron Bagrie says it vindicates the Reserve Bank's decision to cut the official cash rate to 2.5% earlier this month.