Surge In Business Confidence

19 September 2008

Media Release

Surge In Business Confidence

In a survey of almost a thousand Auckland companies taken this last week, those believing business conditions will improve during the next six months is at its highest level for over 12 months.

If you combine those with companies who expect the general business situation to remain the same, 68% of those surveyed are saying they expect the business conditions to improve or remain the same, with 32% still believing the market will deteriorate.

At 32% those who believe the business situation will deteriorate are at their lowest level for 12 months.

When asked about their own business situation, 47% of businesses believed conditions will improve in the next 6 months (its highest level in 12 months) and 19% still believed conditions would deteriorate.

Employment conditions have also eased, with only 20% believing skilled staff were difficult to find, down from 45% in December of last year.

The single factor most limiting for businesses at the moment was demand followed by finance.

Investment intentions remained flat, but when asked do you expect interest rates to be greater, the same or less in the next 12 months, 60% of respondents believed they would be less.

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BusinessConfidenceResultHighlights

Do you consider that the GENERAL BUSINESS situation in New Zealand will improve, remain the same or deteriorate during the NEXT SIX MONTHS?

/ Sep 2007 / Dec 2007 / Mar-08 / Jun 2008 / Sep 2008
Same / 42% / 43% / 27% / 30% / 36%
Improve / 19% / 21% / 9% / 14% / 32%
Deteriorate / 38% / 36% / 64% / 57% / 32%
NA / 0% / 0% / 0% / 0% / 0%

Do you consider that YOUR OWN BUSINESS situation in New Zealand will improve, remain the same or deteriorate during the NEXT SIX MONTHS?

/ Sep 2007 / Dec 2007 / Mar-08 / Jun 2008 / Sep 2008
Same / 40% / 40% / 40% / 40% / 34%
Improve / 43% / 43% / 29% / 32% / 47%
Deteriorate / 17% / 17% / 31% / 28% / 19%
NA / 0% / 0% / 0% / 0% / 0%

In general, do you find that getting the STAFF YOU WANT TODAY is easier, the same, or harder than it was THREE MONTHS AGO?

Skilled / Sep 2007 / Dec 2007 / Mar-08 / Jun 2008 / Sep 2008
Same / 35% / 33% / 37% / 40% / 41%
Harder / 42% / 45% / 38% / 25% / 20%
Easier / 5% / 6% / 8% / 16% / 20%
NA / 18% / 16% / 18% / 20% / 19%

Do you expect INTEREST RATES charged on loans during the NEXT TWELVE MONTHS to be greater/same/less than those during the PAST TWELVE MONTHS?

/ Sep 2007 / Dec 2007 / Mar-08 / Jun 2008 / Sep 2008
Greater / 52% / 50% / 65% / 29% / 15%
Same / 33% / 38% / 25% / 33% / 21%
Less / 14% / 9% / 8% / 36% / 60%
NA / 2% / 2% / 2% / 2% / 3%

ENDS

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