Business confidence plummets

The Herald reports:

New Zealand business confidence dropped sharply in November with uncertainty around changing government policy, a softer housing market, and difficulty getting credit seen as likely causes. The kiwi fell about a quarter of a US cent.

A net 39 per cent of businesses were pessimistic about the year ahead, the lowest level since early 2009, and a decline of 29 points from the previous month, according to the ANZ Business Outlook.

This is a huge drop. In August it was +18% and now it is -39%. I can’t recall such a dramatic fall since the GFC. But this is not due to external shocks but because the policies of the new Government are so bad.

If business confidence remains low, it means investment will drop off, and there will be fewer jobs. You may see unemployment rise.

So the new Government has a real challenge ahead to stop this happening.