Survey: Hutt Valley business confidence positive

Hutt Valley Chamber of Commerce

Sponsored by Red Hot Business Coaching

Business Confidence Survey – December 2016

Hutt Valley Chamber of Commerce
Media Release

21 December 2016

Hutt Valley business confidence positive

Hutt Valley business confidence in New Zealand’s economy remains positive according to the latest Hutt Valley Chamber of Commerce Business Confidence Survey, sponsored by Red Hot Business Coaching.

Expectations and confidence have decreased this quarter compared to the last survey in September, but stays positive. Respondents are anticipating positive activity with a net 29.7% expecting the situation to improve over the next 6 months, compared to a net 49.5% in September and net 15% in June. This is also consistent with this time last year, where businesses expected New Zealand’s economy to improve a net 30.4%.

Overall figures show that 34% of respondents expect the national business situation to improve, 61% expect it to remain the same, and 4% expect it to deteriorate.

Hutt Valley business confidence in their own business also remains stable. A net 51% of business respondents said they expected their own business situation to improve over the next 6 months, compared to a net 55% in September and net 47% in June. Of all respondents, 57% expect an improvement, 35% expect things to stay the same and 5% expect a decline in their own situation.

The survey was conducted in December over a two-week period and attracted 74 respondents.

Expectations around business investment remain positive, consistent with last quarter. A net 11% of businesses expect to invest more in buildings over the next 12 months, compared to a net 9% in September. Investment in plant and machinery has improved from last quarter, with a net 22% of businesses expect to invest in the next 12 months, compared to a net 11% in September.

Business hiring expectations have improved with a net 15% expecting to hire full-time and a net 12% expecting to hire part-time staff over the next three months.

According to respondents, the last 3 months have seen positive sales and profitability results. Increased profits were recorded by 31% of respondents, with 45% seeing similar profits to September. Sales in New Zealand were positive over the past 3 months, with 28% of respondents noting an increase in New Zealand sales, although exports were not as positive with only 13% of respondents noting an increase in exports sales.

Lack of demand continues to be the prevalent factor limiting business expansion, remaining the top factor of the last year, and respondents highlighted the continuous difficulty in finding skilled employees. Of respondents, finding skilled staff has become harder again, with 36% saying it was harder to find skilled staff compared to 3 months ago and only 1% are finding it easier than 3 months ago. This compares with 31% finding it harder, and 4% finding it easier in September.

Chief Executive of the Hutt Valley Chamber of Commerce, Mark Futter, said “the results show a stable economic environment. Expectations for the next few months are confident, and likely reflect the strong results seen over the past 3 months.”

“Hutt Valley’s diverse business environment is overall performing well and feeling optimistic.”

“With strong performance comes a greater need for skilled talent. It is a concern that our businesses are still struggling to connect with the skilled staff.”

ENDS

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