ANZ sees drift in economy

Press, 4 July 1985, Page 28

ANZ sees drift in economy

There is increasing evidence of a significant reduction in business activity, say the directors of the ANZ Banking Group (New Zealand), Ltd, in an interim report to shareholders. New car sales, retail spending, and new housing permits all point to a slowdown, which has been expected for some time. “Business confidence is easing and there is concern in particular about the prospects for inflation.” The present tight monetary supply is expected to continue for much of 1985. Interest rates are unlikely to fall quickly, in spite of the lower Government deficit, because the demand for funds remains strong

and inflationary expectations are high, they say. Competition for deposits j will remain intense even with a smaller Government - presence in the market. ’ The total group net equity < profit rose 11.3 per cent to" $31,973,000 in the six months * to March 31, compared with the previous corresponding period. Included in the result were extraordinary« profits of $245,000 ($447,000 y previously) and 29 per cent, less from UDC Group Holdings at $4,055,000. The pre-tax profit rose 15 per cent to $59.4M and the tax provision rose $4.3M to $27,627,000. The interim dividend has been increased from 5c to 6c a share (12 per cent).