NZD - NZIER QSBO for Q3: business confidence worst since March 2009

The New Zealand Institute for Economic Research survey

• Quarterly Survey of Business Opinion (QSBO)

NZIER summary:

further deterioration in business confidence

• net 28 percent of businesses expect economic conditions to worsen
• lowest level since March 2009

Firms' own activity for the September quarter and expectations for the next quarter both fell, indicating a slowing in economic growth over the second half of 2018.

• A net 0.4 percent of firms reported higher demand over the September quarter - the lowest level since September 2012
• Firms are worried about Government policy, labour costs and availability, margins and consumer confidence

Businesses remained pessimistic about an improvement in profitability

• This continued deterioration in profitability has made businesses more cautious, with a net 3 percent of businesses reducing headcount in the September quarter.
• Businesses were also more circumspect about new investment

NZD/USD had a few pips knocked off:

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The NZIER results fit with the fall in business confidence reported in NZ from other surveys and sources. NZIER making the point about the impact on employment and investment. Not a positive development.