Auckland Business Confidence Plummets

The latest Quarterly Business Confidence Survey shows Auckland businesses are continuing to be cautious and confidence in the general business environment and their own situation has almost halved since February.

The Business Confidence Survey of almost 900 business respondents was undertaken electronically by the Auckland Chamber of Commerce last week.

Asked to look ahead for the next six months, only a net 12% of respondents believe that the general business situation in New Zealand will improve. This is down from 22% in February who held this view.

However, in respect of their own business situation, almost half (48%) of respondents predicted an improvement, slightly down from February.

Auckland Chamber of Commerce chief executive Michael Barnett says the survey results show that there is a sense of caution amongst businesses as they continue to keep an eye on global economic issues and respond to shrinking margins.

“Business is finding the market conditions continue to be challenging and they now need to look at other areas to make cost savings.”

Among other findings, 22% of respondents were continuing to find it difficult to employ skilled staff, while most businesses predicted their investment on buildings and machinery would be either the same or less during the next 12 months. On the positive side, just 17% of businesses expected interest rates on loans to rise over the next 12 months, down from 30% in February.

“The results really do reflect businesses are holding onto their money and keeping an eye on global issues.”

Auckland Chamber of Commerce chief executive Michael Barnett and Westpac senior economist Dominick Stephens will present a full analysis of the Quarterly Business Confidence Survey and predictions for the next quarter at the Auckland Chamber of Commerce Quarterly Economic Update on Thursday 24 May at 8am at the Hobson Room, Alexandra Park, Greenlane.