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Tuesday, the latest monthly Confidence Survey from the Bank of New Zealand showed that a net 50% of firms expect the economy to get better over the coming year. However, this is slightly down from a net 56% in early September.
"The result is the second highest in five years, and in conjunction with the many other business surveys released recently, suggests it is reasonable to expect near 3% growth in the NZ economy over the coming year", the BNZ said.
At the same time, the BNZ noted that it was unreasonable to expect above average growth, given the generally cautious sentiments prevailing in some industries.
The BNZ noted that the sentiment remained positive in the residential real estate sector, with listings shortages. In the construction sector, the sentiment was strong, with the employment market looking stronger, and in the automotive sectors sentiments are the most positive for a very long time, the BNZ added.
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