27 June 2002Media Statement
EMBARGOED TO 1am, FRIDAYSlip in business confidence no surprise - Cullen

Finance Minister Michael Cullen says the slip in business confidence over recent months is unsurprising given increases in both the exchange rate and interest rates.

He was commenting on the June National Bank Business Outlook showing general business confidence was now net 7 per cent negative after recording a third consecutive fall.

“Business confidence in New Zealand has always been extremely sensitive to shifts in interest rates and the stronger dollar will obviously have an effect on export returns so the drop is to be expected,” Dr Cullen said.

However he said the economy remained strong and that this was reflected in the 33.1 per cent positive result on the important own activity measure.

Contact: Patricia Herbert [press secretary] 04-471-9412 or 021-270-9013. E-mail patricia.herbert@parliament.govt.nz