New Zealand’s business sentiment deteriorated further in July, slumping to its lowest level in six years in the face of a slowing economy, an ANZ Bank survey showed on Friday, bolstering the case for further rate cuts.
The survey’s headline measure showed a net 15.3 percent of respondents expected the economy to worsen over the year ahead, compared with a net 2.3 percent pessimism level in the previous survey.
It was the lowest sentiment reading since mid-2009, when the economy was in recession.
The monthly survey showed the outlook for investment, construction, and employment slipping.
A net 19 percent of respondents expected their own businesses to grow in the next 12 months, from 23.6 percent last month.
The bank said the survey did not show an economy in trouble, but certainly it would benefit from lower interest rates.
Inflation expectations edged up to 1.7 percent compared with 1.68 percent in the previous survey, while the number of firms expecting to raise prices eased slightly.