WELLINGTON: New Zealand's business confidence rebounded to a 14 year high in September, with companies strongly optimistic in their own outlook and that of the broader economy, an ANZ Bank survey showed on Monday.
The survey's headline measure of sentiment showed a net 54.1 percent of respondents expected the economy to improve over the year ahead from a net 48.1 percent optimism level in the previous survey. It was the highest reading since March 1999.
The monthly business outlook showed a net 45.3 percent of companies expect their own business to grow in the next 12 months from 43.3 percent in August.
The bank said the survey pointed to broad-based, "full blown" economic expansion, with an implied growth rate of about 3.8 percent.
Inflation expectations for the year ahead, a focus for the central bank, were at 2.31 percent from 2.33 percent.
But it warned that price pressures seemed to be growing, coming in particular from the construction sector.
The Reserve Bank of New Zealand has said it expects to hold its cash rate at a record low 2.5 percent for the rest of the year, but warned rates will have to rise to head off inflation pressures caused by the strong housing and construction markets.
The latest Reuters poll shows economists expect rates to start rising in the first quarter of 2014.
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