Kiwi business confidence hits six year low

Confidence amongst New Zealand businesses has hit its lowest level in six years according to the latest ANZ survey.

Source: 1 NEWS

The August ANZ Business outlook found a net 29 per cent of firms are pessimistic about the economy.

That's the fifth consecutive monthly decline, with ANZ Chief Economist Cameron Bagrie describing business confidence as remaining "on the ropes".

Mr Bagrie says key indicators in the survey which correlate to Gross Domestic Product, also weakened.

Although he stresses the economy is still moving forward, albeit in fits and starts and at a slower overall pace.   

Finance Minister Bill English

The Finance Minister Bill English acknowledges the survey shows that the economy is going through a 'softening stage'.

However he says indicators on firms' own outlooks in the survey are more positive for the longer term.

The kiwi dollar appears to have weakened in response to the confidence survey and was recently trading at about 64.17 US cents down around half a cent.

Meanwhile Treasury today has put out a report noting that growth for the June quarter was likely to be 0.6 percent, slightly lower than was in the Budget. It's forecasting growth for the year to fall to two percent.

It says weaker retail spending is pointing to softer consumption growth in the quarter.

However it says that is being offset to a degree by strong inward migration.