Analysts at ANZ Bank New Zealand Limited, (ANZ), explained that New Zealand businesses are pessimistic, but retailers most of all.
Key Quotes:
“Activity expectations have declined. Profitability is squeezed, on the back of cost pressures, particularly rising labour costs. And firms are looking to shrink their workforces and invest in labour-saving technologies. But while retailers are pessimistic, they have actually been a success story in recent times.
They have faced important longer-term challenges: the industry has become increasingly global, leading to increased competition, weakening pricing power and more concentration. And yet firms have adapted to these trends, with innovation, solid productivity gains and strong output growth evident. The industry will need to continue to adjust and the outlook is looking a bit more challenging.
But history suggests they’re up to it. There’s a range of domestic data out this week and we’ll be firming up our views on Q2 GDP.”
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