An increasing population bringing new skills to New Zealand and confidence in the local and global economy are key drivers in this quarter’s edition of the Equipment Demand Index. We look at how businesses are starting the new financial year and their prospects.
Business confidence soaring as a result of global economy
An Expanding Economy
The New Zealand economy is on an upswing, with Treasury forecasting GDP growth to increase from 2.9 per cent in 2017 to 3.2 per cent in 2018. An increasing population is bringing new skills and an increase in demand for services and products to the country, giving a boost to multiple industries. Our research looks at how confidence in the local and global economy is driving the economy and which industries look to take the lead.
Capex. Set For a Record in 2017?
With a booming economy, are businesses keen to take advantage of the increase in demand, or are they playing it safe and reducing their capex spend? This quarter’s research analyses business’ plans on managing capex across SMEs, lower corporates and upper corporates, as well as industries.
Growth Changes Gear
Will a boost in the economy automatically equate to a boost in asset base? Hospitality appears to be leading the way with 60.0 per cent of businesses looking to acquire assets, but how are other industries looking to manage their key assets?
Despite a turbulent 2016 and what many feel is an uncertain 2017, New Zealand businesses are feeling confident, but how long will this last for? We take a look at how local and global politics are feeding into business sentiment and what the potential impact could be. The future appears to be very bright for New Zealand businesses with confidence in both the local and global economy.
NB. The research and publication of the Equipment Demand Index was conducted under Maia Financial’s previous name, Alleasing.