(Updates with profit forecasts in third paragraph.)
Oct. 26 (Bloomberg) -- New Zealand business confidence slumped in October, falling for a third-straight month after the nation’s credit rating was downgraded and concerns grew that the global economy is slowing.
A net 13.2 percent of companies expect the economy will improve over the next 12 months, down from 30.3 percent in September, according to a survey released in Wellington today by ANZ National Bank Ltd. The net figure subtracts the number of pessimists from the number of optimists.
Business expectations for profits and future investment fell for a third month as a net 2 percent of companies said they forecast higher net income in the year ahead.
“The sacrificial lamb in this month’s survey has been profits,” ANZ National Bank Chief Economist Cameron Bagrie said in a statement. “This does not augur well for investment and employment, critical elixirs of sustained economic expansions.”
New Zealand lost its top credit grades at Standard and Poor’s and Fitch Ratings on Sept. 30 on concern that government and household debt was expanding.
New Zealand’s victories in the Rugby World Cup final and semi-finals occurred too late to influence the results, the report said.
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