Fall in confidence disappointing but not surprising
"The fall in confidence in the NZIER's September quarter survey of business opinion is disappointing but not
surprising," Finance Minister Michael Cullen said today.
"Higher petrol prices, the recent exchange rate volatility and flat domestic demand are squeezing company profit
margins, especially in the non-tradeables sector."
But Dr Cullen said it was important not to lose perspective.
"All forecasters have the economy rebounding before the end of this year and growing steadily through the next two
years.
"The low dollar is assisting exporters, with manufacturers expecting a stronger lift in export sales over the next three
months.
"This growth will eventually flow through to the domestic market," Dr Cullen said.
ENDS