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Confidence reaches optimistic new level

Confidence reaches optimistic new level

(5 June 2012 – New Zealand) Business optimism has bounded ahead and reached a record high, according to a new source.

The survey results showed 57 percent of the 28,000 people surveyed feel positive, compared with 45 percent in May and 25 percent in April.

People’s reactions may have been buoyed by the Budget, Fonterra’s announcement of a NZ$1.20 (A$0.99) increase in the milk solids payout and a five-cent fall in the New Zealand dollar against the United States dollar.

The strong level of sentiment had positive implications for business investment and hiring, which would lead to consumers' willingness to spend, the source said.

Renewed confidence also boded well for the housing market and government tax receipts, according to the survey.

Respondents' comments reflected an improving mood in the agricultural sector and more construction activity.

Three new questions were added to the monthly survey. When people were asked how they felt about rising house prices, 29 percent said they were unhappy, 42 percent were indifferent and 29 percent were happy.

Nearly 70 percent of respondents said they were not concerned about New Zealand's rising economic relationship with China, 22 percent were concerned and 12 percent were indifferent.

And more than a quarter of people said they were thinking about raising the debt levels for their business.

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