Builders’ confidence high

Activity expectations within the construction sector reached a two-year peak in the latest ANZ Business Outlook survey

The survey shows that 21% of businesses are optimistic about the future in November, down four points compared to the previous month. Despite the dip, it’s the third-highest confidence rating recorded this year.

Asked to consider the outlook for their own firms, a net 38% of respondents expect better results, with a net 63% of respondents in the construction sector expecting increased activity in the coming months – the highest sector result since May 2014.

Firms in construction were also the most positive about employment, with a net 33% indicating their intention to hire more staff in the short-term. Across the five surveyed sectors, intention to employ more staff was strong at a net 25%.

The good news was tempered by a net 22% of all respondents (7.4% within the construction sector) indicating that getting credit was becoming more difficult, with a net 7.4% of firms within the construction sector indicating credit was more difficult to obtain.

Tightening credit could be a double blow for the construction industry, as the Kaikoura earthquake is expected to shake up the insurance industry and make it harder to get contract works insurance. Check back in January for more information or see the February issue of Under Construction.

About the ANZ Business Outlook survey

ANZ’s Business Outlook Survey is the results of a monthly survey that include 1,500 businesses nationwide and is designed to provide a snapshot of business opinions regarding the expected future state of their business and the New Zealand economy overall.

For each question, respondents are asked to indicate ‘improved’ or ‘increased’, ‘deteriorated’ or ‘decreased’, or ‘remain the same’. The responses are then converted into a net balance statistic.