NZIER Reports Persistent Downbeat Mood in New Zealand's Business Sector
Investing.com - Business confidence within New Zealand has shown signs of gradual recovery throughout Q2, despite an overall negative outlook reported by a private research organization on Tuesday.
The NZIER’s quarterly business opinion survey indicated that while pessimistic sentiment decreased slightly from the previous quarter at 66% to current levels of net negative sentiment at 63%, businesses remain apprehensive about future conditions.
Seasonal adjustments reveal similar patterns with anticipations of worsening business circumstances dropping marginally from last period’s negativity standing at 63% down to present-day figures of around 59%. The capacity utilization gauge also showed a significant decrease to just over four-fifths (81.7%) compared to last quarter’s near full-capacity usage rate (94%).
According to NZIER, softening demand coupled with notable declines in capacity use among construction and manufacturing firms along with increased difficulties faced by companies locating unskilled labor suggests significant slackening in economic pressures.
Retailers appear particularly gloomy concerning their general fiscal predictions according to NZIER findings; however, this despondent mood extends across various sectors.
Principal Economist Christina Leung commented during the survey release that these indications should assure central bank officials that things are progressing towards betterment albeit slowly, reflecting the softer demand scenario being observed currently.
RBA Decision Today: Mortgage Holders Brace for Possible Interest Rate Hike
Later in today's session, market participants will be keenly monitoring the Reserve Bank of Australia as it deliberates whether to enforce its thirteenth interest rate increase within just over a year.
Major banking institutions largely anticipate another cash rate addition of approximately one-quarter percent but expert opinions vary due largely in part because recent mixed financial news casts shadows over accurate forecasting.
As per RBA Governor Philip Lowe, even though inflation seems past its peak, it is still sitting above seven percent, and returning within the target range appears to be a lengthy process.
RBA aims to bring down inflation between two-three percent ranges meanwhile yesterday AMP bank released data showing nearly seventy-percent mortgage holders feared they wouldn't be able to keep up payments if any further hikes were imposed, moreover, half of the respondents claimed inability to make further cuts daily expenditures.
Financial expert Mark Bouris predicts yet another rise based on low unemployment numbers whereas RBA Deputy Michelle Bullock had earlier mentioned the need for an unemployment surge to control soaring inflation.
South Korea's Consumer Inflation Continues to Decelerate, Hits the Lowest in Nearly Two Years
For five consecutive months now, consumer price growth has been slowing down in South Korea, reaching its weakest point in almost two years this June reports official data Tuesday.
Last month recorded annualized CPI increment of merely 2.7% versus 3.3% in the previous month, thereby marking the slowest yearly growth since September previous year, according to Statistics Korea.
Month-on-month headline index remained unchanged, contrasting the slight upward trend noticed before economists had predicted a marginal rise similarly monthly basis
Central Bank of South Korea hasn’t is expected to maintain the status quo during its next monetary policy meeting, scheduled for mid-July.