The latest Alleasing Equipment Demand Index (the Index) for New Zealand, So many assets, so much potential, issued in February 2017, shows businesses expect to substantially grow their asset base this year. This is against a positive economic backdrop, with the New Zealand economy turning in the economic growth of 3.6 per cent, one of the highest in the developed world.
In a first for the Index, more than half of the 250 businesses surveyed indicated they have plans to increase their asset base in the March quarter of 2017.
The results show 51.2 per cent of respondents have plans to increase their asset base by an average of 8.9 per cent in the current quarter. This is the first time the quarterly increase has moved over the 8.0 per cent level. Just 3.0 per cent of businesses have plans to lower their asset base, by an average of only 3.4 per cent.
This is also the first time the Index has included responses from executives in larger corporate businesses, which are defined as those turning over between NZ$100 million and NZ$250 million annually.
This was the most positive group of all surveyed for the Index. Of this group, a healthy 56.9 per cent indicated they want to add to their asset base in the first part of the year.