Business confidence continues upward trend

18 May 2016

Media Release: For Immediate release

Business confidence continues upward trend – “Auckland is buzzing,” says Auckland Chamber head Michael Barnett.

Business confidence in Auckland has continued its rise for the third straight quarter, according to the Auckland Chamber of Commerce’s May-quarter survey.

This is the key message from a survey of business respondents undertaken electronically by the Auckland Chamber of Commerce last week.

Asked how respondents see their own business situation over the next six months, a net 51% predict their situation will improve compared with 40% of this view in February.

A similar trend is revealed when respondents are asked whether the general business situation in New Zealand will improve, remain the same or deteriorate in the next six months. A net 23% of respondents believe the general situation will improve over the next six months compared to just 12% of this view last February.

Among other findings:

• 41% of businesses expect it to be harder to find skills in the next three months, up from the 35% of this view in the February.

• 32% of respondents expect interest rates to fall over the next 12 months compared to just 11% expecting them to increase.

• 28% of respondents report that demand is the most limiting factor limiting their ability expand, followed by finance 23% and capacity and labour both 16%.

Commenting, Chamber chief executive Michael Barnett says the strong lift in confidence results from a combination of positive trends – increased building and construction activity,

low interest rates and the continuing boost in Auckland’s population by both immigrants and visitors.

“Putting these factors together, Auckland is buzzing. We can justifiably say that the city’s fast pace of growth is a boost to business activity.”

“The 28% of respondents citing demand as a limiting factor to their ability to expand tells me we need to do much more to encourage businesses to get into exporting,” said Mr Barnett.

The difficulties businesses are having finding skilled workers is also a major concern – see separate media release.

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